WallStSmart

Hormel Foods Corporation (HRL)vsMcCormick & Company Incorporated (MKC-V)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hormel Foods Corporation generates 71% more annual revenue ($12.14B vs $7.11B). MKC-V leads profitability with a 23.1% profit margin vs 4.0%. HRL appears more attractively valued with a PEG of 1.44. MKC-V earns a higher WallStSmart Score of 74/100 (B).

HRL

Buy

54

out of 100

Grade: C-

Growth: 2.0Profit: 5.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 2.92

MKC-V

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 8.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRLUndervalued (+53.6%)

Margin of Safety

+53.6%

Fair Value

$51.61

Current Price

$21.33

$30.28 discount

UndervaluedFair: $51.61Overvalued
MKC-VUndervalued (+81.0%)

Margin of Safety

+81.0%

Fair Value

$379.48

Current Price

$48.96

$330.52 discount

UndervaluedFair: $379.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRL1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

MKC-V6 strengths · Avg: 9.0/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
528.0%10/10

Earnings expanding 528.0% YoY

Return on EquityProfitability
25.4%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

Areas to Watch

HRL4 concerns · Avg: 2.5/10
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

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

EPS GrowthGrowth
-5.1%2/10

Earnings declined 5.1%

MKC-V1 concerns · Avg: 4.0/10
PEG RatioValuation
1.954/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : MKC-V

The strongest argument for MKC-V centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 23.1% and operating margin at 14.3%. Revenue growth of 16.7% demonstrates continued momentum.

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 : MKC-V

The primary concerns for MKC-V are PEG Ratio.

Key Dynamics to Monitor

HRL profiles as a value stock while MKC-V is a growth play — different risk/reward profiles.

MKC-V carries more volatility with a beta of 0.71 — expect wider price swings.

MKC-V is growing revenue faster at 16.7% — sustainability is the question.

HRL generates stronger free cash flow (280M), providing more financial flexibility.

Bottom Line

MKC-V scores higher overall (74/100 vs 54/100), backed by strong 23.1% margins and 16.7% revenue growth. HRL offers better value entry with a 53.6% margin of safety. Both earn "Strong 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.

McCormick & Company Incorporated

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

McCormick & Company is an American multinational food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.

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