McCormick & Company, Incorporated (NYSE:MKC) vs. Associated British Foods (OTCMKTS:ASBFY) Head to Head Contrast

Associated British Foods (OTCMKTS:ASBFY) and McCormick & Company, Incorporated (NYSE:MKC) are both large-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Volatility and Risk

Associated British Foods has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Associated British Foods and McCormick & Company, Incorporated, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated British Foods	4	1	0	1	1.67
McCormick & Company, Incorporated	0	8	6	0	2.43

McCormick & Company, Incorporated has a consensus target price of $63.27, indicating a potential upside of 29.25%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher probable upside, analysts clearly believe McCormick & Company, Incorporated is more favorable than Associated British Foods.

Dividends

Associated British Foods pays an annual dividend of $0.45 per share and has a dividend yield of 1.7%. McCormick & Company, Incorporated pays an annual dividend of $1.92 per share and has a dividend yield of 3.9%. McCormick & Company, Incorporated pays out 31.5% of its earnings in the form of a dividend. McCormick & Company, Incorporated has increased its dividend for 38 consecutive years. McCormick & Company, Incorporated is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Associated British Foods and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated British Foods	N/A	N/A	N/A
McCormick & Company, Incorporated	23.12%	13.29%	5.87%

Valuation & Earnings

This table compares Associated British Foods and McCormick & Company, Incorporated”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated British Foods	$25.41 billion	0.73	$1.34 billion	N/A	N/A
McCormick & Company, Incorporated	$6.84 billion	1.92	$789.40 million	$6.10	8.02

Associated British Foods has higher revenue and earnings than McCormick & Company, Incorporated.

Insider & Institutional Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. 10.6% of McCormick & Company, Incorporated shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

McCormick & Company, Incorporated beats Associated British Foods on 11 of the 16 factors compared between the two stocks.

About Associated British Foods

Associated British Foods plc operates as a diversified food, ingredients, and retail company worldwide. It operates through five segments: Grocery, Ingredients, Agriculture, Sugar, and Retail. The Grocery segment manufactures and sells grocery products, including hot beverages, sugar and sweeteners, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic foods, and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures bakers' yeast, bakery ingredients, enzymes, lipids, yeast extracts, and cereal specialties. The Agriculture segment manufactures and sells animal feeds; and provides other products and services for the agriculture sector. The Sugar segment is involved in growing, processing, and selling sugar beet and sugar cane to industrial users. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kids wear, as well as beauty, homeware, and accessories. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.

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.