Analyzing Premier Foods (OTCMKTS:PRRFY) & McCormick & Company, Incorporated (NYSE:MKC)

Premier Foods (OTCMKTS:PRRFY – Get Free Report) and McCormick & Company, Incorporated (NYSE:MKC – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Premier Foods and McCormick & Company, Incorporated, as reported by MarketBeat.

McCormick & Company, Incorporated has a consensus price target of $61.90, indicating a potential upside of 32.85%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher possible upside, analysts clearly believe McCormick & Company, Incorporated is more favorable than Premier Foods.

Volatility and Risk

Premier Foods has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Dividends

Premier Foods pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. McCormick & Company, Incorporated pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. McCormick & Company, Incorporated pays out 31.5% of its earnings in the form of a dividend. McCormick & Company, Incorporated has increased its dividend for 38 consecutive years. McCormick & Company, Incorporated is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Premier Foods and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.

Institutional and Insider Ownership

79.7% of McCormick & Company, Incorporated shares are owned by institutional investors. 10.6% of McCormick & Company, Incorporated shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Premier Foods and McCormick & Company, Incorporated”s revenue, earnings per share and valuation.

McCormick & Company, Incorporated has higher revenue and earnings than Premier Foods.

Summary

McCormick & Company, Incorporated beats Premier Foods on 14 of the 15 factors compared between the two stocks.

About Premier Foods

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Premier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally. The company operates through Grocery, Sweet Treats, and international segments. It offers a portfolio of product categories, including flavorings and seasonings under the Bisto, OXO, Paxo, and Saxa brands; cooking sauces and accompaniments under the Sharwood's, Loyd Grossman, Spice Tailor and Homepride brands; quick meals, snacks, and soups under the Batchelors and Smash brands; ambient desserts under the Ambrosia, Bird's, and Angel Delight brands; and ambient cakes under the Mr Kipling and Cadbury brands. The company also provides dumplings under the Atora brand name; plain flour under the Be-Ro brand; dried milk under the Marvel brand name; plain and self-raising flour under the McDougalls brand; and plant based food under the Plantastic brand name. It offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through e-commerce channels. The company was founded in 1975 and is headquartered in Saint Albans, the United Kingdom.

About McCormick & Company, Incorporated

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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.