Hormel Foods Corporation (HRL)vsKraft Heinz Co (KHC)
HRL
Hormel Foods Corporation
$21.33
-0.65%
CONSUMER DEFENSIVE · Cap: $11.74B
KHC
Kraft Heinz Co
$22.49
-0.75%
CONSUMER DEFENSIVE · Cap: $26.62B
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 54/100 (C-).
HRL
Buy54
out of 100
Grade: C-
KHC
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.6%
Fair Value
$51.61
Current Price
$21.33
$30.28 discount
Margin of Safety
+37.6%
Fair Value
$40.03
Current Price
$22.49
$17.54 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
Generating 1.2B in free cash flow
Areas to Watch
ROE of 6.1% — below average capital efficiency
4.0% margin — thin
Revenue declined 2.9%
Earnings declined 5.1%
ROE of -12.8% — below average capital efficiency
Revenue declined 3.4%
Earnings declined 69.2%
Distress zone — elevated risk
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, 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 Return on Equity, Profit Margin, Revenue Growth. 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 value stock while KHC is a turnaround play — different risk/reward profiles.
HRL carries more volatility with a beta of 0.36 — expect wider price swings.
HRL is growing revenue faster at -2.9% — sustainability is the question.
KHC generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
HRL scores higher overall (54/100 vs 51/100). KHC offers better value entry with a 37.6% margin of safety. 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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