Kraft Heinz Company (KHC) vs McCormick & Company, Incorporated (MKC)

Kraft Heinz Company and McCormick & Company, Incorporated are both Packaged Foods companies. Kraft Heinz Company is the larger, with a market value of $28.5B against $12.9B — 2.2× the size. Kraft Heinz Company has negative trailing earnings, so its P/E is not meaningful; McCormick & Company, Incorporated trades at 8.0×. McCormick & Company, Incorporated grew revenue faster over the last twelve months: 9.54% against −1.62%. McCormick & Company, Incorporated has the higher net margin (21.9% vs −13.6%) and the higher return on invested capital (6.36% vs −3.79%). Both pay a dividend; Kraft Heinz Company yields more (4.38% vs 2.54%). Across the 22 metrics below, McCormick & Company, Incorporated leads on 13 and Kraft Heinz Company on 9.

Valuation

Metric KHC MKC Packaged Foods median
P/E n/m 7.96 12.69
P/S 1.12 1.75 0.61
P/B 0.78 1.70 1.47
Price to free cash flow 7.62 12.64 8.50
EV/EBITDA 8.47 11.76 8.20
EV/Sales 1.78 2.19 0.85
Earnings yield (12.11%) 12.56% 0.00%
Free cash flow yield 13.13% 7.91% 6.05%

Profitability

Metric KHC MKC Packaged Foods median
Gross margin 33.37% 38.62% 27.54%
Operating margin (12.76%) 14.94% 0.00%
Net margin (13.64%) 21.91% 0.00%
Free cash flow margin 15.33% 13.81% 2.56%
Return on equity (8.75%) 24.51% 0.00%
Return on assets (4.39%) 10.91% 0.00%
Return on invested capital (3.79%) 6.36% 0.00%

Growth

Metric KHC MKC Packaged Foods median
Revenue growth (TTM) (1.62%) 9.54% 5.69%
EPS growth (last fiscal year) (318.14%) 0.34% —
Revenue growth, 5-year CAGR (0.97%) 4.08% 3.81%
Net income growth, 5-year CAGR 0.00% 1.10% 0.00%

Health

Metric KHC MKC Packaged Foods median
Debt to equity 0.53 0.48 0.26
Current ratio 1.06 0.78 1.64
Net debt to EBITDA 3.13 2.70 0.87

Dividend

Metric KHC MKC Packaged Foods median
Dividend yield 4.38% 2.54% 3.21%
Payout ratio 0.63 0.64 0.00

Size

Metric KHC MKC Packaged Foods median
Market cap 28.45b 12.88b 245.45m

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