Hormel Foods Corporation (HRL)vsThe Kraft Heinz Company (KHC)
HRL
Hormel Foods Corporation
$21.28
+1.82%
CONSUMER DEFENSIVE · Cap: $11.34B
KHC
The Kraft Heinz Company
$24.34
+1.84%
CONSUMER DEFENSIVE · Cap: $28.29B
Smart Verdict
WallStSmart Research — data-driven comparison
The Kraft Heinz Company generates 105% more annual revenue ($24.90B vs $12.15B). HRL leads profitability with a 2.8% profit margin vs -13.6%. KHC appears more attractively valued with a PEG of 0.99. KHC earns a higher WallStSmart Score of 57/100 (C).
HRL
Hold50
out of 100
Grade: D+
KHC
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.1%
Fair Value
$44.44
Current Price
$21.28
$23.16 discount
Margin of Safety
+13.9%
Fair Value
$29.01
Current Price
$24.34
$4.67 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Premium valuation, high expectations priced in
ROE of 4.4% — below average capital efficiency
2.8% margin — thin
Revenue declined 2.4%
ROE of -9.4% — below average capital efficiency
Revenue declined 1.4%
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : HRL
The strongest argument for HRL centers on Price/Book. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bear Case : HRL
The primary concerns for HRL are P/E Ratio, Return on Equity, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Bear Case : KHC
The primary concerns for KHC are Return on Equity, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
HRL profiles as a value stock while KHC is a turnaround play — different risk/reward profiles.
HRL carries more volatility with a beta of 0.29 — expect wider price swings.
KHC is growing revenue faster at -1.4% — sustainability is the question.
KHC generates stronger free cash flow (893M), providing more financial flexibility.
Bottom Line
KHC scores higher overall (57/100 vs 50/100). HRL offers better value entry with a 46.1% 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.
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.
The Kraft Heinz Company
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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