Comparing Fresh Del Monte Produce (NYSE:FDP) & McCormick & Company, Incorporated (NYSE:MKC)

McCormick & Company, Incorporated (NYSE:MKC) and Fresh Del Monte Produce (NYSE:FDP) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Insider & Institutional Ownership

79.7% of McCormick & Company, Incorporated shares are held by institutional investors. Comparatively, 64.8% of Fresh Del Monte Produce shares are held by institutional investors. 10.6% of McCormick & Company, Incorporated shares are held by company insiders. Comparatively, 30.6% of Fresh Del Monte Produce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

McCormick & Company, Incorporated pays an annual dividend of $1.92 per share and has a dividend yield of 3.9%. Fresh Del Monte Produce pays an annual dividend of $1.20 per share and has a dividend yield of 4.4%. McCormick & Company, Incorporated pays out 34.7% of its earnings in the form of a dividend. Fresh Del Monte Produce pays out 82.8% 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 38 consecutive years and Fresh Del Monte Produce has increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares McCormick & Company, Incorporated and Fresh Del Monte Produce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McCormick & Company, Incorporated	$6.84 billion	1.92	$789.40 million	$5.53	8.84
Fresh Del Monte Produce	$4.27 billion	0.30	$90.70 million	$1.45	18.86

McCormick & Company, Incorporated has higher revenue and earnings than Fresh Del Monte Produce. McCormick & Company, Incorporated is trading at a lower price-to-earnings ratio than Fresh Del Monte Produce, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

McCormick & Company, Incorporated has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Fresh Del Monte Produce has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for McCormick & Company, Incorporated and Fresh Del Monte Produce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	0	8	5	0	2.38
Fresh Del Monte Produce	0	1	0	0	2.00

McCormick & Company, Incorporated presently has a consensus price target of $55.30, suggesting a potential upside of 13.16%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher probable upside, analysts plainly believe McCormick & Company, Incorporated is more favorable than Fresh Del Monte Produce.

Profitability

This table compares McCormick & Company, Incorporated and Fresh Del Monte Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McCormick & Company, Incorporated	19.39%	12.01%	5.46%
Fresh Del Monte Produce	1.63%	7.61%	4.89%

Summary

McCormick & Company, Incorporated beats Fresh Del Monte Produce on 14 of the 17 factors compared between the two stocks.

About McCormick & Company, Incorporated

McCormick & Co., Inc. engages in the manufacturing, marketing, and distribution of spices, seasoning mixes, condiments, and other flavorful products to retail outlets, food manufacturers, and foodservice businesses. It operates through the Consumer and Flavor Solutions segments. The Consumer segment sells spices, seasonings, condiments, and sauces. The Flavor Solutions segment includes seasoning blends, spices and herbs, condiments, coating systems, and compound flavors. The company was founded by Willoughby M. McCormick in 1889 and is headquartered in Baltimore, MD.

About Fresh Del Monte Produce

Fresh Del Monte Produce Inc., through its subsidiaries, produces, markets, and distributes fresh and fresh-cut fruits and vegetables in North America, Central America, South America, Europe, the Middle East, Africa, Asia, and internationally. It operates through three segments: Fresh and Value-Added Products, Banana, and Other Products and Services. The company offers pineapples, fresh-cut fruit, fresh-cut vegetables, melons, and vegetables; non-tropical fruits, such as grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries, and kiwis; other fruit and vegetables, and avocados; and prepared fruit and vegetables, juices, other beverages, and meals and snacks. It also engages in the sale of poultry and meat products; and third-party freight services business. The company offers its products under the Del Monte brand, as well as under other brands, such as UTC, Rosy, Just Juice, Fruitini, Pinkglow, Del Monte Zero, Honeyglow, Rubyglow, Honey Miniglow, Bananinis, Mann, Mann’s Logo, Arcadian Harvest, Nourish Bowls, Broccolini, Caulilini, Better Burger Leaf, Romaleaf, and other regional brands. It markets and distributes its products to retail stores, club stores, convenience stores, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.