WallStSmart

McCormick & Company Incorporated (MKC)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 1374% more annual revenue ($104.78B vs $7.11B). MKC leads profitability with a 23.1% profit margin vs 3.5%. MKC appears more attractively valued with a PEG of 1.96. MKC earns a higher WallStSmart Score of 80/100 (A-).

MKC

Exceptional Buy

80

out of 100

Grade: A-

Growth: 7.3Profit: 7.5Value: 8.0Quality: 4.8
Piotroski: 4/9Altman Z: 1.58

TGT

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 5.5Value: 7.3Quality: 5.3
Piotroski: 4/9Altman Z: 2.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MKCUndervalued (+31.0%)

Margin of Safety

+31.0%

Fair Value

$102.20

Current Price

$50.54

$51.66 discount

UndervaluedFair: $102.20Overvalued
TGTUndervalued (+33.2%)

Margin of Safety

+33.2%

Fair Value

$171.60

Current Price

$127.87

$43.73 discount

UndervaluedFair: $171.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MKC6 strengths · Avg: 9.0/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
528.0%10/10

Earnings expanding 528.0% YoY

Return on EquityProfitability
25.4%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

TGT4 strengths · Avg: 8.5/10
Market CapQuality
$58.08B9/10

Large-cap with strong market position

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

Areas to Watch

MKC2 concerns · Avg: 4.0/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

TGT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Revenue GrowthGrowth
-1.5%2/10

Revenue declined 1.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : MKC

The strongest argument for MKC centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 23.1% and operating margin at 14.3%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.

Bear Case : MKC

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

Bear Case : TGT

The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

MKC profiles as a growth stock while TGT is a value play — different risk/reward profiles.

TGT carries more volatility with a beta of 1.03 — expect wider price swings.

MKC is growing revenue faster at 16.7% — sustainability is the question.

TGT generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

MKC scores higher overall (80/100 vs 48/100), backed by strong 23.1% margins and 16.7% revenue growth. TGT offers better value entry with a 33.2% margin of safety. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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