Analyzing Hanover Foods (OTCMKTS:HNFSA) & McCormick & Company, Incorporated (NYSE:MKC)

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

Valuation and Earnings

This table compares McCormick & Company, Incorporated and Hanover Foods”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McCormick & Company, Incorporated	$7.39 billion	2.01	$789.40 million	$6.01	9.21
Hanover Foods	N/A	N/A	N/A	N/A	N/A

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

Analyst Recommendations

This is a summary of current ratings and price targets for McCormick & Company, Incorporated and Hanover Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McCormick & Company, Incorporated	0	7	6	0	2.46
Hanover Foods	0	0	0	0	0.00

McCormick & Company, Incorporated presently has a consensus target price of $60.50, suggesting a potential upside of 9.30%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher probable upside, analysts clearly believe McCormick & Company, Incorporated is more favorable than Hanover Foods.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
McCormick & Company, Incorporated	21.91%	12.78%	5.76%
Hanover Foods	N/A	N/A	N/A

Institutional and Insider Ownership

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

Summary

McCormick & Company, Incorporated beats Hanover Foods on 9 of the 9 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 Hanover Foods

Hanover Foods Corporation engages in processing, packaging, and selling fresh canned and frozen products. It offers baked beans, beans, canned blends and vegetables, frozen blends and vegetables, kosher, pork and beans, soft pretzels, steam in bag products, and tomatoes, as well as soups, salads, and broths. The company was founded in 1924 and is based in Hanover, Pennsylvania.