Blue Apron (APRN) vs. McCormick & Company, Incorporated (MKC) Critical Survey
Blue Apron (NYSE: APRN) and McCormick & Company, Incorporated (NYSE:MKC) are both non-cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
This is a breakdown of current ratings for Blue Apron and McCormick & Company, Incorporated, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McCormick & Company, Incorporated||0||6||3||0||2.33|
Blue Apron presently has a consensus price target of $7.04, indicating a potential upside of 74.22%. McCormick & Company, Incorporated has a consensus price target of $105.75, indicating a potential upside of 3.76%. Given Blue Apron’s higher probable upside, equities research analysts clearly believe Blue Apron is more favorable than McCormick & Company, Incorporated.
Insider and Institutional Ownership
58.4% of Blue Apron shares are owned by institutional investors. Comparatively, 76.1% of McCormick & Company, Incorporated shares are owned by institutional investors. 15.3% of McCormick & Company, Incorporated shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Blue Apron and McCormick & Company, Incorporated’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blue Apron||$795.41 million||0.15||-$54.88 million||($1.05)||-3.85|
|McCormick & Company, Incorporated||$4.41 billion||3.03||$472.30 million||$3.61||28.23|
McCormick & Company, Incorporated has higher revenue and earnings than Blue Apron. Blue Apron 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.
McCormick & Company, Incorporated pays an annual dividend of $1.88 per share and has a dividend yield of 1.8%. Blue Apron does not pay a dividend. McCormick & Company, Incorporated pays out 52.1% of its earnings in the form of a dividend. McCormick & Company, Incorporated has raised its dividend for 30 consecutive years.
This table compares Blue Apron and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McCormick & Company, Incorporated||10.05%||26.09%||8.17%|
McCormick & Company, Incorporated beats Blue Apron on 13 of the 15 factors compared between the two stocks.
Blue Apron Company Profile
Blue Apron Holdings, Inc. is a holding company. The Company is focused on providing recipes and fresh ingredients for making home cooking accessible. The Company offers under a novel business model in which it source, process, store and package meal ingredients and ship them directly to consumers. The Company’s core products include Meals and Wine. Meals product, which offers two meal plans, such as two person plan and family plan. Two person plan, which includes three recipes per week (chosen from six options), each of which serves two people and shipping is free. The Company provides original recipes with the pre-portioned ingredients to complement tastes and lifestyles of college graduates, young couples, families, singles, and empty nesters.
McCormick & Company, Incorporated Company Profile
McCormick & Company, Incorporated is engaged in manufacturing, marketing and distributing spices, seasoning mixes, condiments and other flavorful products to the food industry, including retailers, food manufacturers and foodservice businesses. The Company’s segments include consumer and industrial. The Company is involved in the manufacturing and sales of flavorful products. As of November 30, 2016, it offered brands for consumers in approximately 150 countries and territories. The Company’s brands in the Americas include McCormick, Lawry’s, and Club House, as well as brands, such as Gourmet Garden and OLD BAY. It provides a range of products to food manufacturers and foodservice customers. The Company’s sales, distribution and production facilities are located in North America, Europe and China. It markets regional and ethnic brands, such as Zatarain’s, Stubb’s, Thai Kitchen and Simply Asia. The Company offers sensory testing, culinary research, food safety and flavor application.
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