Hormel Foods Corporation (HRL)vsProcter & Gamble Company (PG)
HRL
Hormel Foods Corporation
$21.33
-0.65%
CONSUMER DEFENSIVE · Cap: $11.74B
PG
Procter & Gamble Company
$147.26
-2.61%
CONSUMER DEFENSIVE · Cap: $342.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Procter & Gamble Company generates 614% more annual revenue ($86.72B vs $12.14B). PG leads profitability with a 19.2% profit margin vs 4.0%. HRL appears more attractively valued with a PEG of 1.44. PG earns a higher WallStSmart Score of 61/100 (C+).
HRL
Buy54
out of 100
Grade: C-
PG
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.6%
Fair Value
$51.61
Current Price
$21.33
$30.28 discount
Margin of Safety
-37.2%
Fair Value
$107.31
Current Price
$147.26
$39.95 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 31 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 23.1%
Generating 3.0B in free cash flow
Areas to Watch
ROE of 6.1% — below average capital efficiency
4.0% margin — thin
Revenue declined 2.9%
Earnings declined 5.1%
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 : PG
The strongest argument for PG centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 19.2% and operating margin at 23.1%.
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 : PG
The primary concerns for PG are PEG Ratio.
Key Dynamics to Monitor
HRL profiles as a value stock while PG is a mature play — different risk/reward profiles.
PG carries more volatility with a beta of 0.40 — expect wider price swings.
PG is growing revenue faster at 7.4% — sustainability is the question.
PG generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
PG scores higher overall (61/100 vs 54/100), backed by strong 19.2% margins. HRL offers better value entry with a 53.6% margin of safety. Both earn "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.
Procter & Gamble Company
CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA
The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health, consumer health, personal care, and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and beverages.
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