McCormick & Company, Incorporated (MKC) vs The J. M. Smucker Company (SJM)

McCormick & Company, Incorporated and The J. M. Smucker Company are both Packaged Foods companies. McCormick & Company, Incorporated and The J. M. Smucker Company are of similar size ($13.1B and $12.9B). McCormick & Company, Incorporated trades at the lower P/E: 8.0× against 56.3×. McCormick & Company, Incorporated grew revenue faster over the last twelve months: 9.54% against 5.08%. McCormick & Company, Incorporated has the higher net margin (21.9% vs 2.51%) and the higher return on invested capital (6.36% vs 4.15%). Both pay a dividend; The J. M. Smucker Company yields more (3.21% vs 2.54%). Across the 23 metrics below, McCormick & Company, Incorporated leads on 13 and The J. M. Smucker Company on 10.

Valuation

Metric MKC SJM Packaged Foods median
P/E 7.96 56.28 12.69
P/S 1.75 1.41 0.61
P/B 1.70 2.25 1.47
Price to free cash flow 12.64 8.13 8.50
EV/EBITDA 11.76 10.42 8.20
EV/Sales 2.19 2.14 0.85
Earnings yield 12.56% 1.78% 0.00%
Free cash flow yield 7.91% 12.30% 6.05%

Profitability

Metric MKC SJM Packaged Foods median
Gross margin 38.62% 38.65% 27.54%
Operating margin 14.94% 9.02% 0.00%
Net margin 21.91% 2.51% 0.00%
Free cash flow margin 13.81% 17.35% 2.56%
Return on equity 24.51% 3.93% 0.00%
Return on assets 10.91% 1.35% 0.00%
Return on invested capital 6.36% 4.15% 0.00%

Growth

Metric MKC SJM Packaged Foods median
Revenue growth (TTM) 9.54% 5.08% 5.69%
EPS growth (last fiscal year) 0.34% 88.75% —
Revenue growth, 5-year CAGR 4.08% 2.49% 3.81%
Net income growth, 5-year CAGR 1.10% 0.00% 0.00%

Health

Metric MKC SJM Packaged Foods median
Debt to equity 0.48 1.17 0.26
Current ratio 0.78 0.87 1.64
Net debt to EBITDA 2.70 4.85 0.87

Dividend

Metric MKC SJM Packaged Foods median
Dividend yield 2.54% 3.21% 3.21%
Payout ratio 0.64 0.61 0.00

Size

Metric MKC SJM Packaged Foods median
Market cap 12.88b 13.07b 245.45m

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