Hormel Foods Corporation (HRL)vsMcCormick & Company Incorporated (MKC-V)
HRL
Hormel Foods Corporation
$21.28
+1.82%
CONSUMER DEFENSIVE · Cap: $11.34B
MKC-V
McCormick & Company Incorporated
$47.52
+1.24%
CONSUMER DEFENSIVE · Cap: $13.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Hormel Foods Corporation generates 58% more annual revenue ($12.15B vs $7.69B). MKC-V leads profitability with a 19.4% profit margin vs 2.8%. HRL appears more attractively valued with a PEG of 1.44. MKC-V earns a higher WallStSmart Score of 59/100 (C).
HRL
Hold50
out of 100
Grade: D+
MKC-V
Buy59
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
+77.9%
Fair Value
$325.30
Current Price
$47.52
$277.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
17.4% revenue growth
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%
Expensive relative to growth rate
Distress zone — elevated risk
Earnings declined 57.1%
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 : MKC-V
The strongest argument for MKC-V centers on P/E Ratio, Return on Equity, Price/Book. Profitability is solid with margins at 19.4% and operating margin at 17.8%. Revenue growth of 17.4% demonstrates continued momentum.
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 : MKC-V
The primary concerns for MKC-V are PEG Ratio, Altman Z-Score, EPS Growth.
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 0.64 — expect wider price swings.
MKC-V is growing revenue faster at 17.4% — sustainability is the question.
HRL generates stronger free cash flow (172M), providing more financial flexibility.
Bottom Line
MKC-V scores higher overall (59/100 vs 50/100), backed by strong 19.4% margins and 17.4% revenue growth. 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.
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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