Financial Analysis: McCormick & Company, Incorporated (NYSE:MKC) & Post (NYSE:POST)

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

Profitability

This table compares McCormick & Company, Incorporated and Post’s 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%
Post	3.82%	12.37%	3.54%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McCormick & Company, Incorporated	$6.84 billion	2.79	$789.40 million	$2.93	24.28
Post	$8.16 billion	0.62	$335.70 million	$5.41	19.64

McCormick & Company, Incorporated has higher earnings, but lower revenue than Post. Post 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.

Volatility and Risk

McCormick & Company, Incorporated has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Post has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Institutional and Insider Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 94.9% of Post shares are held by institutional investors. 23.8% of McCormick & Company, Incorporated shares are held by insiders. Comparatively, 14.1% of Post shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for McCormick & Company, Incorporated and Post, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	0	7	5	0	2.42
Post	0	3	5	0	2.63

McCormick & Company, Incorporated presently has a consensus target price of $74.10, suggesting a potential upside of 4.16%. Post has a consensus target price of $129.67, suggesting a potential upside of 22.03%. Given Post’s stronger consensus rating and higher possible upside, analysts plainly believe Post is more favorable than McCormick & Company, Incorporated.

Summary

McCormick & Company, Incorporated beats Post on 8 of the 13 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 Post

Post Holdings, Inc. operates as a consumer packaged goods holding company in the United States and internationally. It operates through four segments: Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. The Post Consumer Brands segment manufactures, markets, and sells branded and private label ready-to-eat (RTE) cereals under Honey Bunches of Oats, Pebbles, and Malt-O-Meal brand names; hot cereal; peanut butter under the Peter Pan brand; and branded and private label dog and cat food products under Rachael Ray Nutrish, Nature's Recipe, 9Lives, Kibbles 'n Bits and Gravy Train brand names. The Weetabix segment primarily manufactures, markets, and distributes branded and private label RTE cereal under Weetabix and Alpen brands; hot cereals and other cereal-based food products; breakfast drinks; protein-based shakes under the UFIT brand, and nutritional snacks, such as muesli. The Foodservice segment produces and distributes egg products primarily under Papetti's and Abbotsford Farms brands, as well as potato products in the foodservice and food ingredient channels. The segment also manufactures certain meat products. The Refrigerated Retail segment produces and distributes side dish, potato, sausage products under Bob Evans, Bob Evans Farms, and Simply Potatoes brands; eggs and egg products under Bob Evans Egg Whites and Egg Beaters brands; and cheese, and other dairy and refrigerated products under Crystal Farms brand. It serves grocery stores, mass merchandise customers, supercenters, club stores, natural/specialty stores, dollar stores, discounters, wholesalers, convenience stores, pet supply retailers, drug store customers, foodservice distributors, and national restaurant chains, as well as sells its products in the military, ecommerce, and foodservice channels. The company was founded in 1895 and is headquartered in Saint Louis, Missouri.