Kraft Heinz Co (KHC)vsLamb Weston Holdings Inc (LW)
KHC
Kraft Heinz Co
$22.58
+0.49%
CONSUMER DEFENSIVE · Cap: $28.92B
LW
Lamb Weston Holdings Inc
$42.12
-0.59%
CONSUMER DEFENSIVE · Cap: $6.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Kraft Heinz Co generates 283% more annual revenue ($24.99B vs $6.52B). LW leads profitability with a 4.6% profit margin vs -23.1%. KHC appears more attractively valued with a PEG of 0.99. KHC earns a higher WallStSmart Score of 61/100 (C+).
KHC
Buy61
out of 100
Grade: C+
LW
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+16.4%
Fair Value
$29.90
Current Price
$22.58
$7.32 discount
Margin of Safety
+27.8%
Fair Value
$69.62
Current Price
$42.12
$27.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Strong operational efficiency at 20.7%
No standout strengths identified
Areas to Watch
0.8% revenue growth
ROE of -13.7% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
2.9% revenue growth
Grey zone — moderate risk
4.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio, Operating Margin. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : LW
PEG of 1.03 suggests the stock is reasonably priced for its growth.
Bear Case : KHC
The primary concerns for KHC are Revenue Growth, Return on Equity, Altman Z-Score.
Bear Case : LW
The primary concerns for LW are Revenue Growth, Altman Z-Score, Profit Margin. Debt-to-equity of 2.19 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
KHC profiles as a turnaround stock while LW is a value play — different risk/reward profiles.
LW carries more volatility with a beta of 0.46 — expect wider price swings.
LW is growing revenue faster at 2.9% — sustainability is the question.
KHC generates stronger free cash flow (766M), providing more financial flexibility.
Bottom Line
KHC scores higher overall (61/100 vs 53/100). LW offers better value entry with a 27.8% 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.
Kraft Heinz Co
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania.
Lamb Weston Holdings Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.
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