WallStSmart

Freshpet Inc (FRPT)vsHormel Foods Corporation (HRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hormel Foods Corporation generates 975% more annual revenue ($12.22B vs $1.14B). FRPT leads profitability with a 17.6% profit margin vs 3.8%. HRL appears more attractively valued with a PEG of 1.85. FRPT earns a higher WallStSmart Score of 62/100 (C+).

FRPT

Buy

62

out of 100

Grade: C+

Growth: 8.7Profit: 6.5Value: 6.7Quality: 8.0
Piotroski: 4/9Altman Z: 2.18

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

FRPTUndervalued (+49.6%)

Margin of Safety

+49.6%

Fair Value

$135.97

Current Price

$49.74

$86.23 discount

UndervaluedFair: $135.97Overvalued
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

FRPT3 strengths · Avg: 8.7/10
EPS GrowthGrowth
79.2%10/10

Earnings expanding 79.2% YoY

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

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

Reasonable price relative to book value

Areas to Watch

FRPT2 concerns · Avg: 2.5/10
Operating MarginProfitability
1.5%3/10

Operating margin of 1.5%

PEG RatioValuation
3.552/10

Expensive relative to growth rate

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 : FRPT

The strongest argument for FRPT centers on EPS Growth, P/E Ratio, Price/Book. Profitability is solid with margins at 17.6% and operating margin at 1.5%. Revenue growth of 13.1% demonstrates continued momentum.

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bear Case : FRPT

The primary concerns for FRPT are Operating Margin, PEG Ratio.

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

FRPT profiles as a mature stock while HRL is a value play — different risk/reward profiles.

FRPT carries more volatility with a beta of 1.64 — expect wider price swings.

FRPT is growing revenue faster at 13.1% — sustainability is the question.

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

Bottom Line

FRPT scores higher overall (62/100 vs 49/100), backed by strong 17.6% margins and 13.1% revenue growth. 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.

Freshpet Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Freshpet, Inc. manufactures and markets fresh natural cat and dog food and treats in the United States, Canada and the United Kingdom. The company is headquartered in Secaucus, New Jersey.

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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