WallStSmart

Farmer Bros. Co (FARM)vsMcCormick & Company Incorporated (MKC-V)

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Smart Verdict

WallStSmart Research — data-driven comparison

McCormick & Company Incorporated generates 2176% more annual revenue ($7.69B vs $337.72M). MKC-V leads profitability with a 19.4% profit margin vs -5.5%. MKC-V appears more attractively valued with a PEG of 3.28. MKC-V earns a higher WallStSmart Score of 59/100 (C).

FARM

Avoid

34

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 5.7Quality: 5.0

MKC-V

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FARMUndervalued (+87.6%)

Margin of Safety

+87.6%

Fair Value

$13.19

Current Price

$1.28

$11.91 discount

UndervaluedFair: $13.19Overvalued
MKC-VUndervalued (+78.0%)

Margin of Safety

+78.0%

Fair Value

$327.09

Current Price

$46.62

$280.47 discount

UndervaluedFair: $327.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FARM1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

MKC-V4 strengths · Avg: 8.8/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.4%8/10

17.4% revenue growth

Areas to Watch

FARM4 concerns · Avg: 2.3/10
Market CapQuality
$28.09M3/10

Smaller company, higher risk/reward

PEG RatioValuation
7.452/10

Expensive relative to growth rate

Return on EquityProfitability
-48.3%2/10

ROE of -48.3% — below average capital efficiency

Revenue GrowthGrowth
-1.2%2/10

Revenue declined 1.2%

MKC-V3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

PEG RatioValuation
3.282/10

Expensive relative to growth rate

EPS GrowthGrowth
-57.1%2/10

Earnings declined 57.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : FARM

The strongest argument for FARM centers on Price/Book.

Bull Case : MKC-V

The strongest argument for MKC-V centers on P/E Ratio, Return on Equity, Price/Book. Profitability is solid with margins at 19.4% and operating margin at 17.8%. Revenue growth of 17.4% demonstrates continued momentum.

Bear Case : FARM

The primary concerns for FARM are Market Cap, PEG Ratio, Return on Equity.

Bear Case : MKC-V

The primary concerns for MKC-V are Altman Z-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

FARM profiles as a turnaround stock while MKC-V is a growth play — different risk/reward profiles.

FARM carries more volatility with a beta of 1.13 — expect wider price swings.

MKC-V is growing revenue faster at 17.4% — sustainability is the question.

MKC-V generates stronger free cash flow (112M), providing more financial flexibility.

Bottom Line

MKC-V scores higher overall (59/100 vs 34/100), backed by strong 19.4% margins and 17.4% revenue growth. FARM offers better value entry with a 87.6% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Farmer Bros. Co

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Farmer Bros. The company is headquartered in Northlake, Texas.

McCormick & Company Incorporated

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

McCormick & Company is an American multinational food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.

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