Analyzing Annies (BNNY) and McCormick & Company, Incorporated (MKC)
Annies (NYSE: BNNY) and McCormick & Company, Incorporated (NYSE:MKC) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Institutional and Insider Ownership
76.1% of McCormick & Company, Incorporated shares are held by institutional investors. 15.3% of McCormick & Company, Incorporated shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Annies and McCormick & Company, Incorporated’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|McCormick & Company, Incorporated||$4.83 billion||2.92||$477.40 million||$3.71||29.05|
McCormick & Company, Incorporated has higher revenue and earnings than Annies. McCormick & Company, Incorporated is trading at a lower price-to-earnings ratio than Annies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Annies and McCormick & Company, Incorporated, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company, Incorporated||1||4||3||0||2.25|
McCormick & Company, Incorporated has a consensus target price of $106.86, indicating a potential downside of 0.86%. Given McCormick & Company, Incorporated’s higher probable upside, analysts plainly believe McCormick & Company, Incorporated is more favorable than Annies.
McCormick & Company, Incorporated pays an annual dividend of $2.08 per share and has a dividend yield of 1.9%. Annies does not pay a dividend. McCormick & Company, Incorporated pays out 56.1% of its earnings in the form of a dividend. McCormick & Company, Incorporated has raised its dividend for 31 consecutive years.
This table compares Annies and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McCormick & Company, Incorporated||9.88%||25.30%||7.20%|
McCormick & Company, Incorporated beats Annies on 11 of the 13 factors compared between the two stocks.
Annies Company Profile
Annie’s, Inc. is a natural and organic food company. The Company’s product lines include natural products, products made with organic ingredients and certified organic products. The Company sells its products in three primary product categories: meals, snacks, and dressings, condiments and other. Its products appeal to health-conscious consumers who seek to avoid artificial flavors, synthetic colors and preservatives that are used in many conventional packaged foods. The Company offers over 145 products and these products are present in over 35,000 retail locations in the United States and Canada. Products under the Company’s meals category include Macaroni and Cheese, Canned Meals, Pasta Meals, Skillet Meals, Frozen Pizza and Frozen Entrees. Its snack products include Cheddar Bunnies, Bunny Grahams, Fruit Snacks, Snack Mix, Pretzels, Granola Bars and Graham Crackers.
McCormick & Company, Incorporated Company Profile
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.
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