WallStSmart

Hormel Foods Corporation (HRL)vsKellanova (K)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kellanova generates 4% more annual revenue ($12.67B vs $12.14B). K leads profitability with a 10.1% profit margin vs 4.0%. HRL appears more attractively valued with a PEG of 1.53. HRL earns a higher WallStSmart Score of 53/100 (C-).

HRL

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 2.92

K

Buy

50

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 4.7Quality: 5.3
Piotroski: 5/9Altman Z: 2.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRLSignificantly Overvalued (-56.4%)

Margin of Safety

-56.4%

Fair Value

$15.31

Current Price

$22.14

$6.83 premium

UndervaluedFair: $15.31Overvalued
KSignificantly Overvalued (-235.2%)

Margin of Safety

-235.2%

Fair Value

$24.89

Current Price

$83.44

$58.55 premium

UndervaluedFair: $24.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRL2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
130.0%10/10

Revenue surging 130.0% year-over-year

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

K2 strengths · Avg: 10.0/10
Return on EquityProfitability
32.1%10/10

Every $100 of equity generates 32 in profit

Revenue GrowthGrowth
80.0%10/10

Revenue surging 80.0% year-over-year

Areas to Watch

HRL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

P/E RatioValuation
25.8x4/10

Moderate valuation

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

K2 concerns · Avg: 2.0/10
PEG RatioValuation
3.632/10

Expensive relative to growth rate

EPS GrowthGrowth
-16.2%2/10

Earnings declined 16.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : HRL

The strongest argument for HRL centers on Revenue Growth, Price/Book. Revenue growth of 130.0% demonstrates continued momentum.

Bull Case : K

The strongest argument for K centers on Return on Equity, Revenue Growth. Revenue growth of 80.0% demonstrates continued momentum.

Bear Case : HRL

The primary concerns for HRL are PEG Ratio, P/E Ratio, Return on Equity. Thin 4.0% margins leave little buffer for downturns.

Bear Case : K

The primary concerns for K are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

HRL profiles as a hypergrowth stock while K is a growth play — different risk/reward profiles.

HRL carries more volatility with a beta of 0.31 — expect wider price swings.

HRL is growing revenue faster at 130.0% — sustainability is the question.

K generates stronger free cash flow (359M), providing more financial flexibility.

Bottom Line

HRL scores higher overall (53/100 vs 50/100) and 130.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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.

Kellanova

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States.

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