WallStSmart

Hormel Foods Corporation (HRL)vsKraft Heinz Co (KHC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Kraft Heinz Co generates 105% more annual revenue ($24.94B vs $12.14B). HRL leads profitability with a 4.0% profit margin vs -23.4%. KHC appears more attractively valued with a PEG of 0.99. 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

KHC

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 4.5Value: 6.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.91
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

Intrinsic value data unavailable for KHC.

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

KHC3 strengths · Avg: 8.7/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.17B8/10

Generating 1.2B in free cash flow

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

KHC4 concerns · Avg: 2.0/10
Return on EquityProfitability
-12.8%2/10

ROE of -12.8% — below average capital efficiency

Revenue GrowthGrowth
-3.4%2/10

Revenue declined 3.4%

EPS GrowthGrowth
-69.2%2/10

Earnings declined 69.2%

Altman Z-ScoreHealth
0.912/10

Distress zone — elevated risk

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 : KHC

The strongest argument for KHC centers on Price/Book, PEG Ratio, Free Cash Flow. PEG of 0.99 suggests the stock is reasonably priced for its growth.

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 : KHC

The primary concerns for KHC are Return on Equity, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

HRL profiles as a hypergrowth stock while KHC is a turnaround 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.

KHC generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

HRL scores higher overall (53/100 vs 51/100) 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.

Kraft Heinz Co

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania.

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