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MKC vs PG

MKC
McCormick & Company, Incorporated
NEUTRAL
Price
$50.54
Market Cap
$13.59B
Sector
Consumer Defensive
AI Confidence
85%
PG
The Procter & Gamble Company
BEARISH
Price
$145.71
Market Cap
$340.49B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
MKC
8.29
PG
21.59
Forward P/E
MKC
15.1
PG
20.23
P/B Ratio
MKC
1.95
PG
6.48
P/S Ratio
MKC
1.91
PG
3.99
EV/EBITDA
MKC
13.93
PG
14.76

Profitability

Gross Margin
MKC
38.18%
PG
51.19%
Operating Margin
MKC
14.34%
PG
26.3%
Profit Margin
MKC
23.12%
PG
19.3%
ROE
MKC
25.35%
PG
31.56%
ROA
MKC
4.88%
PG
10.9%

Growth

Revenue Growth
MKC
16.7%
PG
1.5%
Earnings Growth
MKC
528.3%
PG
-5.4%

Financial Health

Debt/Equity
MKC
0.65
PG
0.69
Current Ratio
MKC
0.76
PG
0.72
Quick Ratio
MKC
0.29
PG
0.47

Dividends

Dividend Yield
MKC
3.8%
PG
2.92%
Payout Ratio
MKC
30.0%
PG
61.88%

AI Verdict

MKC NEUTRAL

MKC presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 and a severe technical downtrend (0/100). While the stock is fundamentally undervalued relative to its Graham Number ($59.71) and trades at a very low P/E of 8.29, the poor liquidity ratios (Quick Ratio 0.29) and declining price momentum offset the valuation appeal. Strong profitability metrics, including an ROE of 25.35%, suggest a resilient core business, but the deterministic health scores indicate significant internal operational or financial deterioration.

Strengths
Deep value valuation with a P/E of 8.29, significantly below sector average
Strong profitability with a 23.12% profit margin and 25.35% ROE
Sustainable dividend profile with a low 30% payout ratio
Risks
Weak financial health indicated by a Piotroski F-Score of 3/9
Severe liquidity risk with a Quick Ratio of 0.29 and Current Ratio of 0.76
Strongly bearish technical trend (0/100) and negative 1Y/5Y returns
PG BEARISH

PG exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but it is severely overvalued relative to its deterministic baselines. The current price of $145.71 represents a massive premium over the Graham Number ($58.45) and Intrinsic Value ($47.25), while a PEG ratio of 3.92 indicates the valuation is disconnected from its stagnant growth. Negative earnings growth (-5.40% YoY) combined with bearish insider activity and a 0/100 technical trend suggests significant downside risk despite the company's operational efficiency.

Strengths
Exceptional Return on Equity (ROE) of 31.56%
Strong gross margins (51.19%) and operating margins (26.30%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Extreme valuation premium over Graham and Intrinsic value estimates
Negative earnings growth (-5.40% YoY and -6.70% Q/Q)
Weak liquidity ratios with a Current Ratio of 0.72 and Quick Ratio of 0.47

Compare Another Pair

MKC vs PG: Head-to-Head Comparison

This page compares McCormick & Company, Incorporated (MKC) and The Procter & Gamble Company (PG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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