McCormick & Company, Incorporated (MKC) vs Smithfield Foods, Inc. (SFD)

McCormick & Company, Incorporated and Smithfield Foods, Inc. are both Packaged Foods companies. McCormick & Company, Incorporated is the larger, with a market value of $12.3B against $7.3B — 1.7× the size. Smithfield Foods, Inc. trades at the lower P/E: 6.9× against 8.3×. McCormick & Company, Incorporated grew revenue faster over the last twelve months: 13.2% against 4.25%. McCormick & Company, Incorporated has the higher net margin (19.4% vs 6.84%) and the lower return on invested capital (5.90% vs 10.9%). Both pay a dividend; Smithfield Foods, Inc. yields more (6.38% vs 4.14%). Across the 21 metrics below, Smithfield Foods, Inc. leads on 13 and McCormick & Company, Incorporated on 8.

Valuation

Metric MKC SFD Packaged Foods median
P/E 8.32 6.90 13.41
P/S 1.62 0.47 0.62
P/B 1.65 1.05 1.47
Price to free cash flow 13.46 8.94 8.73
EV/EBITDA 12.00 4.78 8.26
EV/Sales 2.06 0.52 0.91
Earnings yield 12.01% 14.48% 0.68%
Free cash flow yield 7.43% 11.19% 5.21%

Profitability

Metric MKC SFD Packaged Foods median
Gross margin 39.06% 13.39% 27.54%
Operating margin 13.43% 8.62% 0.00%
Net margin 19.39% 6.84% 0.00%
Free cash flow margin 12.05% 5.31% 2.37%
Return on equity 22.30% 15.92% 0.00%
Return on assets 9.97% 9.13% 0.00%
Return on invested capital 5.90% 10.89% 0.00%

Growth

Metric MKC SFD Packaged Foods median
Revenue growth (TTM) 13.23% 4.25% 5.69%
EPS growth (last fiscal year) 0.34% 0.00% 4.57%
Revenue growth, 5-year CAGR 4.08% — 3.81%
Net income growth, 5-year CAGR 1.10% — 0.00%

Health

Metric MKC SFD Packaged Foods median
Debt to equity 0.48 0.29 0.24
Current ratio 0.66 2.56 1.68
Net debt to EBITDA 2.70 0.29 0.84

Dividend

Metric MKC SFD Packaged Foods median
Dividend yield 4.14% 6.38% 4.06%
Payout ratio 0.35 0.44 0.57

Size

Metric MKC SFD Packaged Foods median
Market cap 12.32b 7.28b 263.30m

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