Contrasting McCormick & Company, Incorporated (MKC) and Hain Celestial Group (NASDAQ:HAIN)

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

Dividends

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McCormick & Company, Incorporated pays an annual dividend of $2.08 per share and has a dividend yield of 2.0%. Hain Celestial Group does not pay a dividend. McCormick & Company, Incorporated pays out 48.8% of its earnings in the form of a dividend. McCormick & Company, Incorporated has increased its dividend for 31 consecutive years.

Institutional and Insider Ownership

91.3% of Hain Celestial Group shares are owned by institutional investors. Comparatively, 79.7% of McCormick & Company, Incorporated shares are owned by institutional investors. 12.3% of Hain Celestial Group shares are owned by insiders. Comparatively, 19.2% of McCormick & Company, Incorporated shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Hain Celestial Group has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares Hain Celestial Group and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hain Celestial Group 3.38% 8.35% 4.86%
McCormick & Company, Incorporated 16.04% 23.39% 6.49%

Valuation & Earnings

This table compares Hain Celestial Group and McCormick & Company, Incorporated’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hain Celestial Group $2.85 billion 1.13 $67.42 million $1.22 25.43
McCormick & Company, Incorporated $4.83 billion 2.85 $477.40 million $4.26 24.65

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Hain Celestial Group and McCormick & Company, Incorporated, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hain Celestial Group 1 10 3 0 2.14
McCormick & Company, Incorporated 1 4 3 0 2.25

Hain Celestial Group presently has a consensus price target of $40.54, suggesting a potential upside of 30.68%. McCormick & Company, Incorporated has a consensus price target of $111.86, suggesting a potential upside of 6.52%. Given Hain Celestial Group’s higher possible upside, equities analysts plainly believe Hain Celestial Group is more favorable than McCormick & Company, Incorporated.

Summary

McCormick & Company, Incorporated beats Hain Celestial Group on 11 of the 16 factors compared between the two stocks.

Hain Celestial Group Company Profile

The Hain Celestial Group, Inc. is an organic and natural products company. The Company and its subsidiaries manufacture, market, distribute and sell organic and natural products under brand names which are sold as better-for-you products. The Company’s segments include United States, United Kingdom, Hain Pure Protein and Rest of World. Its Rest of World segment includes Canada and Europe. The Company’s brand names include Almond Dream, Arrowhead Mills, Bearitos, BluePrint, Celestial Seasonings, Cully & Sully, Danival, DeBoles, Earth’s Best, Ella’s Kitchen, Empire, Europe’s Best, Farmhouse Fare, Frank Cooper’s, FreeBird, Gale’s, Garden of Eatin’, GG UniqueFiber, Hain Pure Foods, Hartley’s, Health Valley, Imagine, Johnson’s Juice Co., Joya, Kosher Valley, Lima, The Greek Gods, Tilda, Walnut Acres, WestSoy, Yves Veggie Cuisine and Yorkshire Provender. Its personal care products are marketed under the Alba Botanica, Avalon Organics, Earth’s Best, JASON, Live Clean and Queen Helene brands.

McCormick & Company, Incorporated Company Profile

McCormick & Company, Incorporated is engaged in manufacturing, marketing and distributing spices, seasoning mixes, condiments and other flavorful products to the food industry, including retailers, food manufacturers and foodservice businesses. The Company’s segments include consumer and industrial. The Company is involved in the manufacturing and sales of flavorful products. As of November 30, 2016, it offered brands for consumers in approximately 150 countries and territories. The Company’s brands in the Americas include McCormick, Lawry’s, and Club House, as well as brands, such as Gourmet Garden and OLD BAY. It provides a range of products to food manufacturers and foodservice customers. The Company’s sales, distribution and production facilities are located in North America, Europe and China. It markets regional and ethnic brands, such as Zatarain’s, Stubb’s, Thai Kitchen and Simply Asia. The Company offers sensory testing, culinary research, food safety and flavor application.

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