McCormick & Company, Incorporated (NYSE:MKC) and Coty (NYSE:COTY) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
Earnings and Valuation
This table compares McCormick & Company, Incorporated and Coty's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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McCormick & Company, Incorporated | $5.35 billion | 4.14 | $702.70 million | $2.67 | 31.05 |
Coty | $4.72 billion | 1.27 | $-1,006,700,000.00 | ($0.48) | -16.29 |
McCormick & Company, Incorporated has higher revenue and earnings than Coty. Coty is trading at a lower price-to-earnings ratio than McCormick & Company, Incorporated, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
37.5% of McCormick & Company, Incorporated shares are owned by institutional investors. Comparatively, 22.7% of Coty shares are owned by institutional investors. 11.0% of McCormick & Company, Incorporated shares are owned by company insiders. Comparatively, 1.9% of Coty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares McCormick & Company, Incorporated and Coty's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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McCormick & Company, Incorporated | 13.75% | 20.93% | 7.24% |
Coty | -15.56% | -3.35% | -0.72% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for McCormick & Company, Incorporated and Coty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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McCormick & Company, Incorporated | 2 | 4 | 3 | 0 | 2.11 |
Coty | 1 | 9 | 5 | 0 | 2.27 |
McCormick & Company, Incorporated presently has a consensus target price of $81.5556, indicating a potential downside of 1.62%. Coty has a consensus target price of $6.5577, indicating a potential downside of 16.14%. Given McCormick & Company, Incorporated's higher possible upside, research analysts plainly believe McCormick & Company, Incorporated is more favorable than Coty.
Risk & Volatility
McCormick & Company, Incorporated has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Coty has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500.
Summary
McCormick & Company, Incorporated beats Coty on 11 of the 14 factors compared between the two stocks.