The Kraft Heinz Company (KHC)vsLamb Weston Holdings Inc (LW)
KHC
The Kraft Heinz Company
$23.86
-0.83%
CONSUMER DEFENSIVE · Cap: $27.61B
LW
Lamb Weston Holdings Inc
$53.49
-0.54%
CONSUMER DEFENSIVE · Cap: $7.38B
Smart Verdict
WallStSmart Research — data-driven comparison
The Kraft Heinz Company generates 276% more annual revenue ($24.90B vs $6.62B). LW leads profitability with a 3.9% profit margin vs -13.6%. LW appears more attractively valued with a PEG of 0.74. KHC earns a higher WallStSmart Score of 57/100 (C).
KHC
Buy57
out of 100
Grade: C
LW
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.9%
Fair Value
$29.01
Current Price
$23.86
$5.15 discount
Margin of Safety
+26.6%
Fair Value
$68.43
Current Price
$53.49
$14.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Growing faster than its price suggests
Areas to Watch
ROE of -9.4% — below average capital efficiency
Revenue declined 1.4%
Distress zone — elevated risk
Currently unprofitable
Moderate valuation
0.7% revenue growth
3.9% margin — thin
Earnings declined 54.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : KHC
The strongest argument for KHC centers on Price/Book, PEG Ratio. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bull Case : LW
The strongest argument for LW centers on PEG Ratio. PEG of 0.74 suggests the stock is reasonably priced for its growth.
Bear Case : KHC
The primary concerns for KHC are Return on Equity, Revenue Growth, Altman Z-Score.
Bear Case : LW
The primary concerns for LW are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 2.17 is elevated, increasing financial risk. Thin 3.9% 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 0.47 — expect wider price swings.
LW is growing revenue faster at 0.7% — sustainability is the question.
KHC generates stronger free cash flow (893M), providing more financial flexibility.
Bottom Line
KHC scores higher overall (57/100 vs 49/100). LW offers better value entry with a 26.6% 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.
The Kraft Heinz Company
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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