Critical Comparison: Greencore Group (GNCGY) and McCormick & Company, Incorporated (MKC)

Greencore Group (OTCMKTS: GNCGY) and McCormick & Company, Incorporated (NYSE:MKC) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

How to Become a New Pot Stock Millionaire

Greencore Group has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Dividends

Greencore Group pays an annual dividend of $0.25 per share and has a dividend yield of 2.8%. McCormick & Company, Incorporated pays an annual dividend of $2.08 per share and has a dividend yield of 2.0%. Greencore Group pays out 32.1% of its earnings in the form of a dividend. McCormick & Company, Incorporated pays out 48.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. McCormick & Company, Incorporated has increased its dividend for 31 consecutive years. Greencore Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Greencore Group and McCormick & Company, Incorporated’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Greencore Group $2.94 billion 0.53 $15.46 million $0.78 11.36
McCormick & Company, Incorporated $4.83 billion 2.85 $477.40 million $4.26 24.67

McCormick & Company, Incorporated has higher revenue and earnings than Greencore Group. Greencore Group 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.

Profitability

This table compares Greencore Group and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Greencore Group N/A N/A N/A
McCormick & Company, Incorporated 16.04% 23.39% 6.49%

Insider & Institutional Ownership

0.0% of Greencore Group shares are owned by institutional investors. Comparatively, 79.7% of McCormick & Company, Incorporated shares are owned by institutional investors. 19.2% of McCormick & Company, Incorporated shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Greencore Group and McCormick & Company, Incorporated, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greencore Group 0 0 0 0 N/A
McCormick & Company, Incorporated 1 5 3 0 2.22

McCormick & Company, Incorporated has a consensus target price of $111.38, suggesting a potential upside of 5.99%. Given McCormick & Company, Incorporated’s higher possible upside, analysts plainly believe McCormick & Company, Incorporated is more favorable than Greencore Group.

Summary

McCormick & Company, Incorporated beats Greencore Group on 12 of the 15 factors compared between the two stocks.

Greencore Group Company Profile

Greencore Group plc produces and sells various food products primarily in the United Kingdom and the United States. It operates through Convenience Foods UK & Ireland, Convenience Foods US, and Ingredients and Property segments. The company provides sandwiches, wraps, rolls, sub-rolls, flatbreads, baguettes, bagels, prepared salads, and sushi products; and prepared meals, such as chilled ready meals, chilled sauces and soups, and quiches. It also offers grocery products comprising cooking sauces, table sauces, pickles, Yorkshire puddings, cakes, and desserts, as well as various convenience food products; and frozen breakfast sandwiches, kid, frozen sandwiches, and salad kits. It provides its products primarily through retailers, coffee shops, grocery stores, convenience stores, supermarket and high street chains, and petrol forecourts. Greencore Group plc was founded in 1991 and is headquartered in Dublin, Ireland.

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.

Receive News & Ratings for Greencore Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Greencore Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply