WallStSmart

Conagra Brands, Inc. (CAG)vsHormel Foods Corporation (HRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hormel Foods Corporation generates 9% more annual revenue ($12.22B vs $11.18B). HRL leads profitability with a 3.8% profit margin vs -0.4%. HRL appears more attractively valued with a PEG of 1.85. CAG earns a higher WallStSmart Score of 54/100 (C-).

CAG

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.63

HRL

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 5.0Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAGUndervalued (+8.6%)

Margin of Safety

+8.6%

Fair Value

$21.90

Current Price

$13.01

$8.89 discount

UndervaluedFair: $21.90Overvalued
HRLUndervalued (+48.1%)

Margin of Safety

+48.1%

Fair Value

$46.15

Current Price

$23.62

$22.53 discount

UndervaluedFair: $46.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAG2 strengths · Avg: 9.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
39.0%8/10

Earnings expanding 39.0% YoY

HRL1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

CAG4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.634/10

Distress zone — elevated risk

PEG RatioValuation
10.862/10

Expensive relative to growth rate

Return on EquityProfitability
-0.5%2/10

ROE of -0.5% — below average capital efficiency

Revenue GrowthGrowth
-1.9%2/10

Revenue declined 1.9%

HRL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
29.1x4/10

Moderate valuation

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CAG

The strongest argument for CAG centers on Price/Book, EPS Growth.

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bear Case : CAG

The primary concerns for CAG are Altman Z-Score, PEG Ratio, Return on Equity.

Bear Case : HRL

The primary concerns for HRL are PEG Ratio, P/E Ratio, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

CAG profiles as a turnaround stock while HRL is a value play — different risk/reward profiles.

HRL carries more volatility with a beta of 0.34 — expect wider price swings.

CAG is growing revenue faster at -1.9% — sustainability is the question.

CAG generates stronger free cash flow (469M), providing more financial flexibility.

Bottom Line

CAG scores higher overall (54/100 vs 49/100). HRL offers better value entry with a 48.1% margin of safety. Both earn "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.

Conagra Brands, Inc.

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Conagra Brands, Inc. (formerly ConAgra Foods) is an American consumer packaged goods holding company headquartered in Chicago, Illinois. Conagra makes and sells products under various brand names that are available in supermarkets, restaurants, and food service establishments.

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Hormel Foods Corporation

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.

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