WallStSmart

Hormel Foods Corporation (HRL)vsPilgrims Pride Corp (PPC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pilgrims Pride Corp generates 52% more annual revenue ($18.57B vs $12.22B). PPC leads profitability with a 4.8% profit margin vs 3.8%. PPC appears more attractively valued with a PEG of 0.49. PPC earns a higher WallStSmart Score of 56/100 (C).

HRL

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 5.0Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.92

PPC

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 7.3Quality: 6.5
Piotroski: 4/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRLUndervalued (+48.1%)

Margin of Safety

+48.1%

Fair Value

$46.15

Current Price

$23.62

$22.53 discount

UndervaluedFair: $46.15Overvalued
PPCSignificantly Overvalued (-21.4%)

Margin of Safety

-21.4%

Fair Value

$35.59

Current Price

$29.88

$5.71 premium

UndervaluedFair: $35.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRL1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

PPC5 strengths · Avg: 9.4/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

HRL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
29.1x4/10

Moderate valuation

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

PPC4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.6%4/10

1.6% revenue growth

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

EPS GrowthGrowth
-65.6%2/10

Earnings declined 65.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bull Case : PPC

The strongest argument for PPC centers on PEG Ratio, P/E Ratio, Altman Z-Score. PEG of 0.49 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 : PPC

The primary concerns for PPC are Revenue Growth, Profit Margin, Operating Margin. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

HRL carries more volatility with a beta of 0.34 — expect wider price swings.

PPC is growing revenue faster at 1.6% — 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

PPC scores higher overall (56/100 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.

Pilgrims Pride Corp

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Pilgrim's Pride Corporation produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products to retailers, distributors and food service operators in the United States, the United Kingdom, Mexico, France, Puerto Rico, the Countries Low, rest of Europe, Middle East, Asia and internationally. The company is headquartered in Greeley, Colorado.

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