WallStSmart

Central Garden & Pet Company A (CENTA)vsHormel Foods Corporation (HRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hormel Foods Corporation generates 286% more annual revenue ($12.22B vs $3.16B). CENTA leads profitability with a 5.4% profit margin vs 3.8%. HRL appears more attractively valued with a PEG of 1.85. CENTA earns a higher WallStSmart Score of 68/100 (B-).

CENTA

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 5.5Value: 4.7Quality: 7.5
Piotroski: 5/9Altman Z: 2.45

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

CENTASignificantly Overvalued (-21.7%)

Margin of Safety

-21.7%

Fair Value

$27.51

Current Price

$35.31

$7.80 premium

UndervaluedFair: $27.51Overvalued
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

CENTA3 strengths · Avg: 8.7/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
30.6%8/10

Earnings expanding 30.6% YoY

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

Reasonable price relative to book value

Areas to Watch

CENTA3 concerns · Avg: 3.0/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Profit MarginProfitability
5.4%3/10

5.4% margin — thin

Free Cash FlowQuality
$-60.09M2/10

Negative free cash flow — burning cash

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 : CENTA

The strongest argument for CENTA centers on Price/Book, P/E Ratio, EPS Growth.

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bear Case : CENTA

The primary concerns for CENTA are PEG Ratio, Profit Margin, Free Cash Flow.

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

CENTA carries more volatility with a beta of 0.54 — expect wider price swings.

CENTA is growing revenue faster at 8.7% — sustainability is the question.

HRL generates stronger free cash flow (97M), providing more financial flexibility.

Monitor PACKAGED FOODS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CENTA scores higher overall (68/100 vs 49/100). HRL offers better value entry with a 48.1% margin of safety. Both earn "Strong 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.

Central Garden & Pet Company A

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Central Garden & Pet Company produces and distributes various products for the lawn and garden, and pet supply markets in the United States. The company is headquartered in Walnut Creek, California.

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.

Want to dig deeper into these stocks?