Hormel Foods Corporation (HRL)vsMcCormick & Company Incorporated (MKC-V)
HRL
Hormel Foods Corporation
$25.34
+0.44%
CONSUMER DEFENSIVE · Cap: $13.76B
MKC-V
McCormick & Company Incorporated
$51.40
-2.74%
CONSUMER DEFENSIVE · Cap: $13.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Hormel Foods Corporation generates 65% more annual revenue ($12.22B vs $7.39B). MKC-V leads profitability with a 21.9% profit margin vs 3.8%. HRL appears more attractively valued with a PEG of 1.76. MKC-V earns a higher WallStSmart Score of 63/100 (C+).
HRL
Hold49
out of 100
Grade: D+
MKC-V
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.5%
Fair Value
$45.64
Current Price
$25.34
$20.30 discount
Margin of Safety
+75.4%
Fair Value
$292.66
Current Price
$51.40
$241.26 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 23 in profit
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
16.7% revenue growth
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 5.9% — below average capital efficiency
3.8% margin — thin
Expensive relative to growth rate
Distress zone — elevated risk
Earnings declined 14.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : HRL
The strongest argument for HRL centers on Price/Book.
Bull Case : MKC-V
The strongest argument for MKC-V centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 21.9% and operating margin at 17.4%. Revenue growth of 16.7% demonstrates continued momentum.
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 : 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 0.63 — expect wider price swings.
MKC-V is growing revenue faster at 16.7% — sustainability is the question.
MKC-V generates stronger free cash flow (347M), providing more financial flexibility.
Bottom Line
MKC-V scores higher overall (63/100 vs 49/100), backed by strong 21.9% margins and 16.7% revenue growth. HRL offers better value entry with a 47.5% 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.
Compare with Other PACKAGED FOODS Stocks
Want to dig deeper into these stocks?