MCCORMICK & CO /SH (MKC) & 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 better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

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

Institutional & Insider Ownership

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

Analyst Ratings

This is a summary of current recommendations 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 currently has a consensus target price of $127.13, suggesting a potential downside of 15.48%. Given MCCORMICK & CO /SH’s higher possible upside, research analysts plainly believe MCCORMICK & CO /SH is more favorable than China Marine Food Group.

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 increased its dividend for 31 consecutive years.

Valuation and Earnings

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

Volatility and Risk

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

Summary

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

MCCORMICK & CO /SH Company Profile

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.

China Marine Food Group Company Profile

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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