Financial Analysis: McCormick & Company, Incorporated (NYSE:MKC) & Above Food Ingredients (NASDAQ:ABVE)

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

Profitability

This table compares McCormick & Company, Incorporated and Above Food Ingredients’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McCormick & Company, Incorporated	21.91%	12.78%	5.76%
Above Food Ingredients	N/A	N/A	N/A

Earnings and Valuation

This table compares McCormick & Company, Incorporated and Above Food Ingredients”s gross 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	1.97	$789.40 million	$6.01	8.36
Above Food Ingredients	$294.84 million	0.02	-$39.49 million	N/A	N/A

McCormick & Company, Incorporated has higher revenue and earnings than Above Food Ingredients.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for McCormick & Company, Incorporated and Above Food Ingredients, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	1	6	6	0	2.38
Above Food Ingredients	0	0	0	0	0.00

McCormick & Company, Incorporated presently has a consensus target price of $60.50, indicating a potential upside of 20.47%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher probable upside, equities research analysts clearly believe McCormick & Company, Incorporated is more favorable than Above Food Ingredients.

Risk & Volatility

McCormick & Company, Incorporated has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Above Food Ingredients has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500.

Institutional & Insider Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 28.8% of Above Food Ingredients shares are held by institutional investors. 10.6% of McCormick & Company, Incorporated shares are held by company insiders. Comparatively, 64.5% of Above Food Ingredients shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

McCormick & Company, Incorporated beats Above Food Ingredients on 11 of the 12 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 Above Food Ingredients

Above Food Ingredients Inc., a regenerative ingredient company, produces vertically integrated supply chain products in Canada, the United States, Mexico, China, France, Turkey, and internationally. It operates through two segments: Disruptive Agriculture and Rudimentary Ingredients, and Consumer Packaged Goods. The Disruptive Agriculture and Rudimentary Ingredients segment engages in the provisioning of discrete genetics, origination, purchasing, grading, processing, and sale of regeneratively grown grain; and origination, purchase, and sale of bespoke ingredients products. The Consumer Packaged Goods segment formulates, manufactures, sells, distributes, and markets proprietary consumer product formulations in owned brands; and focuses on manufacturing and distribution for private-labeled retail owned brands. Above Food Ingredients Inc. is based in Regina, Canada.