Hormel Foods Corporation (HRL)vsThe J. M. Smucker Company (SJM)
HRL
Hormel Foods Corporation
$23.62
+1.42%
CONSUMER DEFENSIVE · Cap: $13.62B
SJM
The J. M. Smucker Company
$103.54
+2.39%
CONSUMER DEFENSIVE · Cap: $12.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Hormel Foods Corporation generates 35% more annual revenue ($12.22B vs $9.05B). HRL leads profitability with a 3.8% profit margin vs -1.5%. SJM appears more attractively valued with a PEG of 1.68. HRL earns a higher WallStSmart Score of 49/100 (D+).
HRL
Hold49
out of 100
Grade: D+
SJM
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+48.1%
Fair Value
$46.15
Current Price
$23.62
$22.53 discount
Margin of Safety
+14.0%
Fair Value
$129.14
Current Price
$103.54
$25.60 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
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
Elevated debt levels
ROE of -24.0% — below average capital efficiency
Earnings declined 2.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : HRL
The strongest argument for HRL centers on Price/Book.
Bull Case : SJM
The strongest argument for SJM centers on Price/Book.
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 : SJM
The primary concerns for SJM are PEG Ratio, Debt/Equity, Return on Equity.
Key Dynamics to Monitor
HRL profiles as a value stock while SJM is a turnaround play — different risk/reward profiles.
HRL carries more volatility with a beta of 0.34 — expect wider price swings.
SJM is growing revenue faster at 5.8% — sustainability is the question.
SJM generates stronger free cash flow (487M), providing more financial flexibility.
Bottom Line
HRL scores higher overall (49/100 vs 48/100). Both earn "Hold" 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.
The J. M. Smucker Company
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The J. M. Smucker Company, also known as Smucker and Smucker's, is an American manufacturer of jam, peanut butter, jelly, fruit syrups, beverages, shortening, ice cream toppings, and other products in North America. Smucker's headquarters are located in Orrville, Ohio.
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