WallStSmart

Farmer Bros. Co (FARM)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 31399% more annual revenue ($106.38B vs $337.72M). TGT leads profitability with a 3.2% profit margin vs -5.5%. TGT appears more attractively valued with a PEG of 2.51. TGT earns a higher WallStSmart Score of 52/100 (C-).

FARM

Avoid

34

out of 100

Grade: F

Growth: 2.7Profit: 2.0Value: 5.7Quality: 5.0

TGT

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 5.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FARMUndervalued (+87.6%)

Margin of Safety

+87.6%

Fair Value

$13.19

Current Price

$1.28

$11.91 discount

UndervaluedFair: $13.19Overvalued
TGTUndervalued (+4.0%)

Margin of Safety

+4.0%

Fair Value

$119.41

Current Price

$141.20

$21.79 discount

UndervaluedFair: $119.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FARM1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

TGT3 strengths · Avg: 8.7/10
Market CapQuality
$60.48B9/10

Large-cap with strong market position

Return on EquityProfitability
21.0%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Areas to Watch

FARM4 concerns · Avg: 2.3/10
Market CapQuality
$28.09M3/10

Smaller company, higher risk/reward

PEG RatioValuation
7.452/10

Expensive relative to growth rate

Return on EquityProfitability
-48.3%2/10

ROE of -48.3% — below average capital efficiency

Revenue GrowthGrowth
-1.2%2/10

Revenue declined 1.2%

TGT4 concerns · Avg: 3.0/10
Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.153/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : FARM

The strongest argument for FARM centers on Price/Book.

Bull Case : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.

Bear Case : FARM

The primary concerns for FARM are Market Cap, PEG Ratio, Return on Equity.

Bear Case : TGT

The primary concerns for TGT are Profit Margin, Operating Margin, Debt/Equity. Thin 3.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

FARM profiles as a turnaround stock while TGT is a value play — different risk/reward profiles.

FARM carries more volatility with a beta of 1.13 — expect wider price swings.

TGT is growing revenue faster at 6.7% — sustainability is the question.

FARM generates stronger free cash flow (-3M), providing more financial flexibility.

Bottom Line

TGT scores higher overall (52/100 vs 34/100). FARM offers better value entry with a 87.6% margin of safety. Both earn "Buy" 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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

Want to dig deeper into these stocks?