Reviewing Fresh Del Monte Produce (NYSE:FDP) & McCormick & Company, Incorporated (NYSE:MKC)

McCormick & Company, Incorporated (NYSE:MKC) and Fresh Del Monte Produce (NYSE:FDP) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares McCormick & Company, Incorporated and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McCormick & Company, Incorporated	19.39%	12.01%	5.46%
Fresh Del Monte Produce	1.63%	7.61%	4.89%

Dividends

McCormick & Company, Incorporated pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. Fresh Del Monte Produce pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. McCormick & Company, Incorporated pays out 34.7% of its earnings in the form of a dividend. Fresh Del Monte Produce pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. McCormick & Company, Incorporated has increased its dividend for 38 consecutive years and Fresh Del Monte Produce has increased its dividend for 5 consecutive years.

Earnings & Valuation

This table compares McCormick & Company, Incorporated and Fresh Del Monte Produce”s top-line 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	1.85	$789.40 million	$5.53	8.51
Fresh Del Monte Produce	$4.27 billion	0.31	$90.70 million	$1.45	19.25

McCormick & Company, Incorporated has higher revenue and earnings than Fresh Del Monte Produce. McCormick & Company, Incorporated is trading at a lower price-to-earnings ratio than Fresh Del Monte Produce, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

McCormick & Company, Incorporated has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Institutional & Insider Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 64.8% of Fresh Del Monte Produce shares are held by institutional investors. 10.6% of McCormick & Company, Incorporated shares are held by insiders. Comparatively, 30.6% of Fresh Del Monte Produce shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for McCormick & Company, Incorporated and Fresh Del Monte Produce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	0	8	5	0	2.38
Fresh Del Monte Produce	0	1	0	0	2.00

McCormick & Company, Incorporated currently has a consensus price target of $55.30, suggesting a potential upside of 17.55%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher possible upside, equities analysts clearly believe McCormick & Company, Incorporated is more favorable than Fresh Del Monte Produce.

Summary

McCormick & Company, Incorporated beats Fresh Del Monte Produce on 14 of the 17 factors compared between the two stocks.

About McCormick & Company, Incorporated

McCormick & Company, Incorporated manufactures, markets and distributes spices, herbs, seasonings, condiments and other flavor products. Its offerings include individual spices and herbs, seasoning blends, extracts, sauces and hot sauces sold under brands such as McCormick, French’s, Frank’s RedHot, OLD BAY and Cholula. The company serves consumers through retail stores and e-commerce, and supplies flavor products and solutions to food service businesses and food and beverage manufacturers. Its products are sold in markets around the world.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc. is a global producer, marketer and distributor of fresh and prepared food products. Its business spans cultivation and sourcing, processing, packaging, transportation and sales to retailers, wholesalers and food-service customers. The company’s products include bananas, pineapples, melons, avocados, berries and other fresh fruit, as well as fresh-cut fruit and vegetables, prepared foods and juices. It also markets products under the Del Monte and other brands. Fresh Del Monte serves customers across North America, Europe, the Middle East, Africa and Asia.