MCCORMICK & CO /SH (MKC) versus China Marine Food Group (CMFO) Critical Analysis

MCCORMICK & CO /SH (NYSE:MKC) and China Marine Food Group (OTCMKTS:CMFO) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Dividends

MCCORMICK & CO /SH pays an annual dividend of $2.08 per share and has a dividend yield of 1.4%. China Marine Food Group does not pay a dividend. MCCORMICK & CO /SH pays out 48.8% of its earnings in the form of a dividend. MCCORMICK & CO /SH has raised its dividend for 31 consecutive years.

Insider & Institutional Ownership

80.4% of MCCORMICK & CO /SH shares are held by institutional investors. 19.2% of MCCORMICK & CO /SH shares are held by insiders. Comparatively, 41.8% of China Marine Food Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for MCCORMICK & CO /SH and China Marine Food Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MCCORMICK & CO /SH 1 7 1 0 2.00
China Marine Food Group 0 0 0 0 N/A

MCCORMICK & CO /SH presently has a consensus price target of $127.13, indicating a potential downside of 15.48%. Given MCCORMICK & CO /SH’s higher probable upside, analysts clearly believe MCCORMICK & CO /SH is more favorable than China Marine Food Group.

Risk & Volatility

MCCORMICK & CO /SH has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, China Marine Food Group has a beta of 4.6, suggesting that its stock price is 360% more volatile than the S&P 500.

Profitability

This table compares MCCORMICK & CO /SH and China Marine Food Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MCCORMICK & CO /SH 16.57% 21.83% 6.22%
China Marine Food Group N/A N/A N/A

Earnings and Valuation

This table compares MCCORMICK & CO /SH and China Marine Food Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MCCORMICK & CO /SH $4.83 billion 4.10 $477.40 million $4.26 35.31
China Marine Food Group N/A N/A N/A N/A N/A

MCCORMICK & CO /SH has higher revenue and earnings than China Marine Food Group.

Summary

MCCORMICK & CO /SH beats China Marine Food Group on 9 of the 12 factors compared between the two stocks.

About MCCORMICK & CO /SH

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company operates through two segments, Consumer and Industrial. The Consumer segment offers spices, herbs, and seasonings, as well as desserts. This segment markets its products under the McCormick, French, Frank's RedHot, Lawry's, Club House, Gourmet Garden, OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, and Drogheria & Alimentari, and Vahiné brand names in Europe, the Middle East, and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane, and Gourmet Garden brand names in Australia, as well as markets regional and ethnic brands, such as Zatarain's, Stubb's, Thai Kitchen, and Simply Asia. It also supplies its products under the private labels. This segment serves retailers comprising grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors or wholesalers. The Industrial segment offers seasoning blends, spices and herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. McCormick & Company, Incorporated was founded in 1889 and is headquartered in Hunt Valley, Maryland.

About China Marine Food Group

China Marine Food Group Limited, through its subsidiaries, engages in the processing, distribution, and sale of processed seafood products and algae-based beverage products primarily in the People's Republic of China. The company offers dried processed seafood products, such as roasted squid, roasted file fish, roasted prawns, shredded roasted squid, barbecued squid, sliced barbecued squid, sliced roasted octopus, spicy sliced octopus, spicy baby squid, spicy sliced squid, and spicy squid head products. China Marine Food Group Limited sells its dried and flavored seafood-based snack foods under the Mingxiang brand; and algae-based beverage products under the Hi-Power brand. The company also sells fresh and frozen marine catch, including Squid (Loligo bleekeri) and horse mackerel. China Marine Food Group Limited is based in Shishi, the People's Republic of China.

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