Hormel Foods Corporation (HRL)vsLamb Weston Holdings Inc (LW)
HRL
Hormel Foods Corporation
$23.62
+1.42%
CONSUMER DEFENSIVE · Cap: $13.62B
LW
Lamb Weston Holdings Inc
$42.12
-0.59%
CONSUMER DEFENSIVE · Cap: $6.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Hormel Foods Corporation generates 87% more annual revenue ($12.22B vs $6.52B). LW leads profitability with a 4.6% profit margin vs 3.8%. LW appears more attractively valued with a PEG of 1.03. LW earns a higher WallStSmart Score of 53/100 (C-).
HRL
Hold49
out of 100
Grade: D+
LW
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+48.1%
Fair Value
$46.15
Current Price
$23.62
$22.53 discount
Margin of Safety
+27.8%
Fair Value
$69.62
Current Price
$42.12
$27.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 5.9% — below average capital efficiency
3.8% margin — thin
2.9% revenue growth
Grey zone — moderate risk
4.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HRL
The strongest argument for HRL centers on Price/Book.
Bull Case : LW
PEG of 1.03 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 3.8% margins leave little buffer for downturns.
Bear Case : LW
The primary concerns for LW are Revenue Growth, Altman Z-Score, Profit Margin. Debt-to-equity of 2.19 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
LW carries more volatility with a beta of 0.46 — expect wider price swings.
LW is growing revenue faster at 2.9% — sustainability is the question.
HRL generates stronger free cash flow (97M), providing more financial flexibility.
Monitor PACKAGED FOODS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LW scores higher overall (53/100 vs 49/100). HRL offers better value entry with a 48.1% 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.
Lamb Weston Holdings Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.
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