The Kraft Heinz Company (KHC)vsMcCormick & Company Incorporated (MKC)
KHC
The Kraft Heinz Company
$24.52
-1.64%
CONSUMER DEFENSIVE · Cap: $28.29B
MKC
McCormick & Company Incorporated
$48.82
+3.24%
CONSUMER DEFENSIVE · Cap: $12.39B
Smart Verdict
WallStSmart Research — data-driven comparison
The Kraft Heinz Company generates 224% more annual revenue ($24.90B vs $7.69B). MKC leads profitability with a 19.4% profit margin vs -13.6%. KHC appears more attractively valued with a PEG of 0.99. MKC earns a higher WallStSmart Score of 65/100 (B-).
KHC
Buy57
out of 100
Grade: C
MKC
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.9%
Fair Value
$29.01
Current Price
$24.52
$4.49 discount
Margin of Safety
+28.6%
Fair Value
$98.78
Current Price
$48.82
$49.96 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
17.4% revenue growth
Areas to Watch
ROE of -9.4% — below average capital efficiency
Revenue declined 1.4%
Distress zone — elevated risk
Currently unprofitable
Distress zone — elevated risk
Expensive relative to growth rate
Earnings declined 57.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : MKC
The strongest argument for MKC 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 : KHC
The primary concerns for KHC are Return on Equity, Revenue Growth, Altman Z-Score.
Bear Case : MKC
The primary concerns for MKC are Altman Z-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
KHC profiles as a turnaround stock while MKC is a growth play — different risk/reward profiles.
MKC carries more volatility with a beta of 0.64 — expect wider price swings.
MKC is growing revenue faster at 17.4% — sustainability is the question.
KHC generates stronger free cash flow (893M), providing more financial flexibility.
Bottom Line
MKC scores higher overall (65/100 vs 57/100), backed by strong 19.4% margins and 17.4% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The Kraft Heinz Company
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania.
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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