McCormick & Company, Incorporated (NYSE:MKC) and Tootsie Roll Industries (NYSE:TR) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Dividends
McCormick & Company, Incorporated pays an annual dividend of $1.36 per share and has a dividend yield of 1.6%. Tootsie Roll Industries pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. McCormick & Company, Incorporated pays out 50.9% of its earnings in the form of a dividend. Tootsie Roll Industries has increased its dividend for 1 consecutive years.
Insider & Institutional Ownership
37.5% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 25.0% of Tootsie Roll Industries shares are held by institutional investors. 11.0% of McCormick & Company, Incorporated shares are held by insiders. Comparatively, 66.9% of Tootsie Roll Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for McCormick & Company, Incorporated and Tootsie Roll Industries, as reported 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 |
Tootsie Roll Industries | 0 | 0 | 0 | 0 | N/A |
McCormick & Company, Incorporated presently has a consensus target price of $81.5556, suggesting a potential downside of 3.40%. Given McCormick & Company, Incorporated's higher possible upside, equities analysts plainly believe McCormick & Company, Incorporated is more favorable than Tootsie Roll Industries.
Risk & Volatility
McCormick & Company, Incorporated has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Tootsie Roll Industries has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.
Profitability
This table compares McCormick & Company, Incorporated and Tootsie Roll Industries' 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% |
Tootsie Roll Industries | 12.36% | 7.75% | 6.03% |
Earnings & Valuation
This table compares McCormick & Company, Incorporated and Tootsie Roll Industries' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
McCormick & Company, Incorporated | $5.35 billion | 4.21 | $702.70 million | $2.67 | 31.62 |
Tootsie Roll Industries | $523.62 million | 4.15 | $64.92 million | N/A | N/A |
McCormick & Company, Incorporated has higher revenue and earnings than Tootsie Roll Industries.
Summary
McCormick & Company, Incorporated beats Tootsie Roll Industries on 11 of the 15 factors compared between the two stocks.