Lamb Weston (LW) vs McCormick & Company, Incorporated (MKC)

Lamb Weston and McCormick & Company, Incorporated are both Packaged Foods companies. McCormick & Company, Incorporated is the larger, with a market value of $12.3B against $7.5B — 1.6× the size. McCormick & Company, Incorporated trades at the lower P/E: 8.3× against 28.9×. McCormick & Company, Incorporated grew revenue faster over the last twelve months: 13.2% against 2.58%. McCormick & Company, Incorporated has the higher net margin (19.4% vs 3.85%) and the higher return on invested capital (5.90% vs 5.80%). Both pay a dividend; McCormick & Company, Incorporated yields more (4.14% vs 2.82%). Across the 23 metrics below, McCormick & Company, Incorporated leads on 19 and Lamb Weston on 4.

Valuation

Metric LW MKC Packaged Foods median
P/E 28.94 8.32 13.41
P/S 1.11 1.62 0.62
P/B 4.08 1.65 1.47
Price to free cash flow 17.16 13.46 8.73
EV/EBITDA 12.12 12.00 8.26
EV/Sales 1.68 2.06 0.91
Earnings yield 3.45% 12.01% 0.68%
Free cash flow yield 5.83% 7.43% 5.21%

Profitability

Metric LW MKC Packaged Foods median
Gross margin 19.38% 39.06% 27.54%
Operating margin 7.80% 13.43% 0.00%
Net margin 3.85% 19.39% 0.00%
Free cash flow margin 6.49% 12.05% 2.37%
Return on equity 14.17% 22.30% 0.00%
Return on assets 3.50% 9.97% 0.00%
Return on invested capital 5.80% 5.90% 0.00%

Growth

Metric LW MKC Packaged Foods median
Revenue growth (TTM) 2.58% 13.23% 5.69%
EPS growth (last fiscal year) (16.80%) 0.34% 4.57%
Revenue growth, 5-year CAGR 12.49% 4.08% 3.81%
Net income growth, 5-year CAGR (1.81%) 1.10% 0.00%

Health

Metric LW MKC Packaged Foods median
Debt to equity 2.17 0.48 0.24
Current ratio 1.45 0.66 1.68
Net debt to EBITDA 3.89 2.70 0.84

Dividend

Metric LW MKC Packaged Foods median
Dividend yield 2.82% 4.14% 4.06%
Payout ratio 0.82 0.35 0.57

Size

Metric LW MKC Packaged Foods median
Market cap 7.47b 12.32b 263.30m

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