Tofutti Brands (OTCMKTS:TOFB) and McCormick & Company, Incorporated (NYSE:MKC) Financial Analysis

Tofutti Brands (OTCMKTS:TOFB) and McCormick & Company, Incorporated (NYSE:MKC) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Tofutti Brands and McCormick & Company, Incorporated’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tofutti Brands	-10.01%	-29.56%	-20.87%
McCormick & Company, Incorporated	23.12%	13.29%	5.87%

Institutional & Insider Ownership

5.1% of Tofutti Brands shares are held by institutional investors. Comparatively, 79.7% of McCormick & Company, Incorporated shares are held by institutional investors. 9.3% of Tofutti Brands shares are held by insiders. Comparatively, 10.6% of McCormick & Company, Incorporated shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Tofutti Brands and McCormick & Company, Incorporated”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tofutti Brands	$7.78 million	0.41	-$780,000.00	($0.15)	-4.14
McCormick & Company, Incorporated	$6.84 billion	1.84	$789.40 million	$6.10	7.66

McCormick & Company, Incorporated has higher revenue and earnings than Tofutti Brands. Tofutti Brands is trading at a lower price-to-earnings ratio than McCormick & Company, Incorporated, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Tofutti Brands has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, McCormick & Company, Incorporated has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Tofutti Brands and McCormick & Company, Incorporated, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tofutti Brands	0	0	0	0	0.00
McCormick & Company, Incorporated	0	8	6	0	2.43

McCormick & Company, Incorporated has a consensus price target of $64.27, indicating a potential upside of 37.58%. Given McCormick & Company, Incorporated’s stronger consensus rating and higher possible upside, analysts clearly believe McCormick & Company, Incorporated is more favorable than Tofutti Brands.

Summary

McCormick & Company, Incorporated beats Tofutti Brands on 13 of the 14 factors compared between the two stocks.

About Tofutti Brands

Tofutti Brands Inc. engages in the development, production, and marketing of plant based, dairy free vegan frozen desserts, cheeses, and other food products under the TOFUTTI brand in the United States, Europe, the Middle East, the Asia Pacific, and Africa. The company offers frozen desserts, including frozen sandwiches and chocolate wafers; ice cream sandwiches; dairy free vegan cheese products, such as cream cheese, sour cream, cheese slices, and dairy free ricotta cheese alternatives; spreads; and frozen food products. It sells its products through independent unaffiliated food brokers to distributors, as well as on a direct basis to retail chain accounts or to warehouse accounts that directly service chain accounts. Tofutti Brands, Inc. was founded in 1981 and is based in Cranford, New Jersey.

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.