Critical Survey: McCormick & Company, Incorporated (NYSE:MKC) versus Australian Oilseeds (NASDAQ:COOT)

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

Profitability

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

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

Volatility and Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Australian Oilseeds	$27.01 million	0.64	-$840,000.00	($0.04)	-15.55
McCormick & Company, Incorporated	$6.84 billion	2.48	$789.40 million	$2.93	21.60

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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Australian Oilseeds	1	0	0	0	1.00
McCormick & Company, Incorporated	0	8	5	0	2.38

McCormick & Company, Incorporated has a consensus price target of $73.30, suggesting a potential upside of 15.83%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher possible upside, analysts clearly believe McCormick & Company, Incorporated is more favorable than Australian Oilseeds.

Insider and Institutional Ownership

13.0% of Australian Oilseeds shares are owned by institutional investors. Comparatively, 79.7% of McCormick & Company, Incorporated shares are owned by institutional investors. 69.1% of Australian Oilseeds shares are owned by company insiders. Comparatively, 23.8% of McCormick & Company, Incorporated shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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

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.

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.