HRL vs. MKC, CLX, IFF, TSN, CELH, BF.B, CAG, CPB, CHD, and USFD
Should you be buying Hormel Foods stock or one of its competitors? The main competitors of Hormel Foods include McCormick & Company, Incorporated (MKC), Clorox (CLX), International Flavors & Fragrances (IFF), Tyson Foods (TSN), Celsius (CELH), Brown-Forman (BF.B), Conagra Brands (CAG), Campbell Soup (CPB), Church & Dwight (CHD), and US Foods (USFD). These companies are all part of the "consumer staples" sector.
McCormick & Company, Incorporated (NYSE:MKC) and Hormel Foods (NYSE:HRL) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, media sentiment, community ranking, dividends and earnings.
McCormick & Company, Incorporated presently has a consensus price target of $77.88, indicating a potential upside of 2.21%. Hormel Foods has a consensus price target of $31.00, indicating a potential downside of 12.21%. Given Hormel Foods' stronger consensus rating and higher possible upside, analysts plainly believe McCormick & Company, Incorporated is more favorable than Hormel Foods.
79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 41.0% of Hormel Foods shares are held by institutional investors. 22.9% of McCormick & Company, Incorporated shares are held by company insiders. Comparatively, 0.7% of Hormel Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
McCormick & Company, Incorporated has a net margin of 10.56% compared to McCormick & Company, Incorporated's net margin of 6.55%. Hormel Foods' return on equity of 14.45% beat McCormick & Company, Incorporated's return on equity.
McCormick & Company, Incorporated has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Hormel Foods has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.
McCormick & Company, Incorporated pays an annual dividend of $1.68 per share and has a dividend yield of 2.2%. Hormel Foods pays an annual dividend of $1.13 per share and has a dividend yield of 3.2%. McCormick & Company, Incorporated pays out 64.1% of its earnings in the form of a dividend. Hormel Foods pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. McCormick & Company, Incorporated has increased its dividend for 37 consecutive years and Hormel Foods has increased its dividend for 59 consecutive years. Hormel Foods is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Hormel Foods has higher revenue and earnings than McCormick & Company, Incorporated. Hormel Foods is trading at a lower price-to-earnings ratio than McCormick & Company, Incorporated, indicating that it is currently the more affordable of the two stocks.
In the previous week, Hormel Foods had 1 more articles in the media than McCormick & Company, Incorporated. MarketBeat recorded 7 mentions for Hormel Foods and 6 mentions for McCormick & Company, Incorporated. Hormel Foods' average media sentiment score of 0.83 beat McCormick & Company, Incorporated's score of -0.03 indicating that McCormick & Company, Incorporated is being referred to more favorably in the media.
McCormick & Company, Incorporated received 9 more outperform votes than Hormel Foods when rated by MarketBeat users. Likewise, 57.99% of users gave McCormick & Company, Incorporated an outperform vote while only 57.73% of users gave Hormel Foods an outperform vote.
Summary
McCormick & Company, Incorporated beats Hormel Foods on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HRL and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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