WallStSmart

Kellanova (K)vsMcCormick & Company Incorporated (MKC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kellanova generates 78% more annual revenue ($12.67B vs $7.11B). MKC leads profitability with a 23.1% profit margin vs 0.1%. MKC appears more attractively valued with a PEG of 1.93. MKC earns a higher WallStSmart Score of 80/100 (A-).

K

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 4.0Value: 3.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.20

MKC

Exceptional Buy

80

out of 100

Grade: A-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KSignificantly Overvalued (-39.6%)

Margin of Safety

-39.6%

Fair Value

$59.76

Current Price

$83.44

$23.68 premium

UndervaluedFair: $59.76Overvalued
MKCUndervalued (+30.8%)

Margin of Safety

+30.8%

Fair Value

$101.93

Current Price

$50.24

$51.69 discount

UndervaluedFair: $101.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

K0 strengths · Avg: 0/10

No standout strengths identified

MKC6 strengths · Avg: 9.0/10
P/E RatioValuation
8.2x10/10

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

Areas to Watch

K4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Return on EquityProfitability
0.3%3/10

ROE of 0.3% — below average capital efficiency

Profit MarginProfitability
0.1%3/10

0.1% margin — thin

Operating MarginProfitability
0.1%3/10

Operating margin of 0.1%

MKC2 concerns · Avg: 4.0/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : K

K has a balanced fundamental profile.

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.

Bear Case : K

The primary concerns for K are Revenue Growth, Return on Equity, Profit Margin. Thin 0.1% margins leave little buffer for downturns.

Bear Case : MKC

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

Key Dynamics to Monitor

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

MKC carries more volatility with a beta of 0.71 — expect wider price swings.

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

K generates stronger free cash flow (359M), providing more financial flexibility.

Bottom Line

MKC scores higher overall (80/100 vs 50/100), backed by strong 23.1% margins and 16.7% revenue growth. Both earn "Exceptional 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.

Kellanova

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States.

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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