Farmer Bros. Co (FARM)vsHormel Foods Corporation (HRL)
FARM
Farmer Bros. Co
$1.28
0.00%
CONSUMER DEFENSIVE · Cap: $28.09M
HRL
Hormel Foods Corporation
$26.02
+1.42%
CONSUMER DEFENSIVE · Cap: $14.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Hormel Foods Corporation generates 3518% more annual revenue ($12.22B vs $337.72M). HRL leads profitability with a 3.8% profit margin vs -5.5%. HRL appears more attractively valued with a PEG of 1.86. HRL earns a higher WallStSmart Score of 49/100 (D+).
FARM
Avoid34
out of 100
Grade: F
HRL
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+87.6%
Fair Value
$13.19
Current Price
$1.28
$11.91 discount
Margin of Safety
+48.0%
Fair Value
$46.02
Current Price
$26.02
$20.01 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -48.3% — below average capital efficiency
Revenue declined 1.2%
Expensive relative to growth rate
Moderate valuation
ROE of 5.9% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : FARM
The strongest argument for FARM centers on Price/Book.
Bull Case : HRL
The strongest argument for HRL centers on Price/Book.
Bear Case : FARM
The primary concerns for FARM are Market Cap, 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
FARM profiles as a turnaround stock while HRL is a value play — different risk/reward profiles.
FARM carries more volatility with a beta of 1.13 — expect wider price swings.
FARM is growing revenue faster at -1.2% — sustainability is the question.
HRL generates stronger free cash flow (97M), providing more financial flexibility.
Bottom Line
HRL scores higher overall (49/100 vs 34/100). FARM offers better value entry with a 87.6% margin of safety. Both earn "Hold" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Farmer Bros. Co
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Farmer Bros. The company is headquartered in Northlake, Texas.
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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