WallStSmart

Hormel Foods Corporation (HRL)vsThe J. M. Smucker Company (SJM)

VS

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

Hold

49

out of 100

Grade: D+

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

SJM

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 4.5Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.70
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
SJMUndervalued (+14.0%)

Margin of Safety

+14.0%

Fair Value

$129.14

Current Price

$103.54

$25.60 discount

UndervaluedFair: $129.14Overvalued

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

SJM1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

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

SJM4 concerns · Avg: 2.8/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Debt/EquityHealth
1.423/10

Elevated debt levels

Return on EquityProfitability
-24.0%2/10

ROE of -24.0% — below average capital efficiency

EPS GrowthGrowth
-2.6%2/10

Earnings declined 2.6%

Comparative Analysis Report

WallStSmart Research

Bull 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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