Hormel Foods Corporation (HRL)vsThe Coca-Cola Company (KO)
HRL
Hormel Foods Corporation
$21.28
+1.82%
CONSUMER DEFENSIVE · Cap: $11.34B
KO
The Coca-Cola Company
$94.08
+1.36%
CONSUMER DEFENSIVE · Cap: $404.72B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 320% more annual revenue ($51.05B vs $12.15B). KO leads profitability with a 28.6% profit margin vs 2.8%. HRL appears more attractively valued with a PEG of 1.44. KO earns a higher WallStSmart Score of 61/100 (C+).
HRL
Hold50
out of 100
Grade: D+
KO
Buy61
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
-46.0%
Fair Value
$64.44
Current Price
$94.08
$29.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 40 in profit
Strong operational efficiency at 33.4%
Keeps 29 of every $100 in revenue as profit
Generating 5.1B in free cash flow
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%
Moderate valuation
Trading at 10.8x book value
Elevated debt levels
Expensive relative to growth rate
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 : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.6% and operating margin at 33.4%.
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 : KO
The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
HRL profiles as a value stock while KO is a mature play — different risk/reward profiles.
KO carries more volatility with a beta of 0.32 — expect wider price swings.
KO is growing revenue faster at 7.4% — sustainability is the question.
KO generates stronger free cash flow (5.1B), providing more financial flexibility.
Bottom Line
KO scores higher overall (61/100 vs 50/100), backed by strong 28.6% margins. 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 Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
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