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 $12.9B against $7.5B — 1.7× the size. Smithfield Foods, Inc. trades at the lower P/E: 7.1× against 8.0×. McCormick & Company, Incorporated grew revenue faster over the last twelve months: 9.54% against 4.25%. McCormick & Company, Incorporated has the higher net margin (21.9% vs 6.84%) and the lower return on invested capital (6.36% vs 10.9%). Across the 20 metrics below, Smithfield Foods, Inc. leads on 12 and McCormick & Company, Incorporated on 8.

Valuation

Metric MKC SFD Packaged Foods median
P/E 7.96 7.05 12.69
P/S 1.75 0.48 0.61
P/B 1.70 1.07 1.47
Price to free cash flow 12.64 9.13 8.50
EV/EBITDA 11.76 4.88 8.20
EV/Sales 2.19 0.53 0.85
Earnings yield 12.56% 14.18% 0.00%
Free cash flow yield 7.91% 10.96% 6.05%

Profitability

Metric MKC SFD Packaged Foods median
Gross margin 38.62% 13.39% 27.54%
Operating margin 14.94% 8.62% 0.00%
Net margin 21.91% 6.84% 0.00%
Free cash flow margin 13.81% 5.31% 2.56%
Return on equity 24.51% 15.92% 0.00%
Return on assets 10.91% 9.13% 0.00%
Return on invested capital 6.36% 10.89% 0.00%

Growth

Metric MKC SFD Packaged Foods median
Revenue growth (TTM) 9.54% 4.25% 5.69%
EPS growth (last fiscal year) 0.34% 0.00% —
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 0.26
Current ratio 0.78 2.56 1.64
Net debt to EBITDA 2.70 0.29 0.87

Dividend

Metric MKC SFD Packaged Foods median
Dividend yield 2.54% — 3.21%
Payout ratio 0.64 — 0.00

Size

Metric MKC SFD Packaged Foods median
Market cap 12.88b 7.52b 245.45m

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