Head to Head Analysis: Australian Oilseeds (NASDAQ:COOT) vs. McCormick & Company, Incorporated (NYSE:MKC)

McCormick & Company, Incorporated (NYSE:MKC) and Australian Oilseeds (NASDAQ:COOT) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Earnings & Valuation

This table compares McCormick & Company, Incorporated and Australian Oilseeds”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McCormick & Company, Incorporated	$6.84 billion	2.65	$789.40 million	$2.93	23.04
Australian Oilseeds	$27.01 million	0.66	-$840,000.00	($0.04)	-16.00

McCormick & Company, Incorporated has higher revenue and earnings than Australian Oilseeds. Australian Oilseeds 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 McCormick & Company, Incorporated and Australian Oilseeds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McCormick & Company, Incorporated	11.54%	14.27%	6.14%
Australian Oilseeds	-2.98%	-104.19%	-4.15%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	0	7	5	0	2.42
Australian Oilseeds	1	0	0	0	1.00

McCormick & Company, Incorporated currently has a consensus target price of $73.30, suggesting a potential upside of 8.59%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher possible upside, analysts plainly believe McCormick & Company, Incorporated is more favorable than Australian Oilseeds.

Institutional & Insider Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 13.0% of Australian Oilseeds shares are held by institutional investors. 23.8% of McCormick & Company, Incorporated shares are held by company insiders. Comparatively, 69.1% of Australian Oilseeds shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

McCormick & Company, Incorporated has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Australian Oilseeds has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Summary

McCormick & Company, Incorporated beats Australian Oilseeds on 13 of the 14 factors compared between the two stocks.

About McCormick & Company, Incorporated

McCormick & Co., Inc. engages in the manufacturing, marketing, and distribution of spices, seasoning mixes, condiments, and other flavorful products to retail outlets, food manufacturers, and foodservice businesses. It operates through the Consumer and Flavor Solutions segments. The Consumer segment sells spices, seasonings, condiments, and sauces. The Flavor Solutions segment includes seasoning blends, spices and herbs, condiments, coating systems, and compound flavors. The company was founded by Willoughby M. McCormick in 1889 and is headquartered in Baltimore, MD.

About Australian Oilseeds

Australian Oilseeds Holdings Ltd. engages in the manufacture and sale oil seeds through its subsidiaries. It focuses on acquiring, engaging in a share exchange, share reconstruction, and amalgamation with, purchasing all or substantially all the assets of, entering contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities. The company was founded on December 29, 2022 and is headquartered in Cootamundra, Australia.