Hormel Foods Corporation (HRL) vs McCormick & Company, Incorporated (MKC)

Hormel Foods Corporation and McCormick & Company, Incorporated are both Packaged Foods companies. McCormick & Company, Incorporated is the larger, with a market value of $12.9B against $11.0B — 1.2× the size. McCormick & Company, Incorporated trades at the lower P/E: 8.0× against 31.3×. McCormick & Company, Incorporated grew revenue faster over the last twelve months: 9.54% against 0.73%. McCormick & Company, Incorporated has the higher net margin (21.9% vs 2.82%) and the higher return on invested capital (6.36% vs 3.64%). Both pay a dividend; Hormel Foods Corporation yields more (3.80% vs 2.54%). Across the 23 metrics below, McCormick & Company, Incorporated leads on 15 and Hormel Foods Corporation on 8.

Valuation

Metric HRL MKC Packaged Foods median
P/E 31.29 7.96 12.69
P/S 0.89 1.75 0.61
P/B 1.38 1.70 1.47
Price to free cash flow 13.85 12.64 8.50
EV/EBITDA 16.81 11.76 8.20
EV/Sales 1.06 2.19 0.85
Earnings yield 3.20% 12.56% 0.00%
Free cash flow yield 7.22% 7.91% 6.05%

Profitability

Metric HRL MKC Packaged Foods median
Gross margin 15.68% 38.62% 27.54%
Operating margin 3.47% 14.94% 0.00%
Net margin 2.82% 21.91% 0.00%
Free cash flow margin 6.45% 13.81% 2.56%
Return on equity 4.30% 24.51% 0.00%
Return on assets 2.56% 10.91% 0.00%
Return on invested capital 3.64% 6.36% 0.00%

Growth

Metric HRL MKC Packaged Foods median
Revenue growth (TTM) 0.73% 9.54% 5.69%
EPS growth (last fiscal year) (40.82%) 0.34% —
Revenue growth, 5-year CAGR 4.73% 4.08% 3.81%
Net income growth, 5-year CAGR (12.04%) 1.10% 0.00%

Health

Metric HRL MKC Packaged Foods median
Debt to equity 0.36 0.48 0.26
Current ratio 1.88 0.78 1.64
Net debt to EBITDA 2.27 2.70 0.87

Dividend

Metric HRL MKC Packaged Foods median
Dividend yield 3.80% 2.54% 3.21%
Payout ratio 0.68 0.64 0.00

Size

Metric HRL MKC Packaged Foods median
Market cap 10.97b 12.88b 245.45m

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