McCormick & Company, (NYSE: MKC) and SunOpta (NASDAQ:STKL) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.
McCormick & Company, pays an annual dividend of $1.88 per share and has a dividend yield of 1.9%. SunOpta does not pay a dividend. McCormick & Company, pays out 51.9% of its earnings in the form of a dividend. SunOpta has raised its dividend for 30 consecutive years.
Volatility & Risk
McCormick & Company, has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, SunOpta has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.
Earnings & Valuation
This table compares McCormick & Company, and SunOpta’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|McCormick & Company,||$4.48 billion||2.65||$776.80 million||$3.62||27.35|
|SunOpta||$1.31 billion||0.61||$70.04 million||($0.64)||-14.53|
McCormick & Company, has higher revenue and earnings than SunOpta. SunOpta is trading at a lower price-to-earnings ratio than McCormick & Company,, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for McCormick & Company, and SunOpta, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company,||0||6||4||0||2.40|
McCormick & Company, presently has a consensus price target of $104.56, suggesting a potential upside of 5.59%. SunOpta has a consensus price target of $9.33, suggesting a potential upside of 0.36%. Given McCormick & Company,’s higher probable upside, analysts clearly believe McCormick & Company, is more favorable than SunOpta.
This table compares McCormick & Company, and SunOpta’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McCormick & Company,||10.05%||26.09%||8.17%|
Insider and Institutional Ownership
72.7% of McCormick & Company, shares are owned by institutional investors. Comparatively, 81.9% of SunOpta shares are owned by institutional investors. 15.3% of McCormick & Company, shares are owned by insiders. Comparatively, 1.9% of SunOpta shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
McCormick & Company, beats SunOpta on 11 of the 16 factors compared between the two stocks.
About McCormick & Company,
McCormick & Company, Incorporated is engaged in manufacturing, marketing and distributing spices, seasoning mixes, condiments and other flavorful products to the food industry, including retailers, food manufacturers and foodservice businesses. The Company’s segments include consumer and industrial. The Company is involved in the manufacturing and sales of flavorful products. As of November 30, 2016, it offered brands for consumers in approximately 150 countries and territories. The Company’s brands in the Americas include McCormick, Lawry’s, and Club House, as well as brands, such as Gourmet Garden and OLD BAY. It provides a range of products to food manufacturers and foodservice customers. The Company’s sales, distribution and production facilities are located in North America, Europe and China. It markets regional and ethnic brands, such as Zatarain’s, Stubb’s, Thai Kitchen and Simply Asia. The Company offers sensory testing, culinary research, food safety and flavor application.
Sunopta Inc is a Canada-based company, which operates businesses focused on a healthy products portfolio. It operates through the following segments: Global Ingredients and Consumer Products. The Global Ingredients segment aggregates its North American and international raw material sourcing and supply operating segments focused on the procurement, processing and sale of specialty and organic grains, seeds, fruits, grain- and cocoa-based ingredients, and other commodities. The Consumer Products segment provides healthy and organic food products that are consumer-packaged to retailers, foodservice distributors and food manufacturers with a range of branded and private label products. It is focused on sourcing non-genetically modified (non-GMO) and organic ingredients, and manufacturing healthy food and beverage products. It manufactures packaged products focused on the healthy beverage, healthy fruit and healthy snack categories.
Receive News & Ratings for McCormick & Company Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McCormick & Company Incorporated and related companies with MarketBeat.com's FREE daily email newsletter.