WallStSmart

Kraft Heinz Co (KHC)vsLamb Weston Holdings Inc (LW)

VS

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

Buy

61

out of 100

Grade: C+

Growth: 4.0Profit: 4.5Value: 7.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.69

LW

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 6.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KHCUndervalued (+16.4%)

Margin of Safety

+16.4%

Fair Value

$29.90

Current Price

$22.58

$7.32 discount

UndervaluedFair: $29.90Overvalued
LWUndervalued (+27.8%)

Margin of Safety

+27.8%

Fair Value

$69.62

Current Price

$42.12

$27.50 discount

UndervaluedFair: $69.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KHC3 strengths · Avg: 8.7/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

PEG RatioValuation
0.998/10

Growing faster than its price suggests

Operating MarginProfitability
20.7%8/10

Strong operational efficiency at 20.7%

LW0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

KHC4 concerns · Avg: 2.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Return on EquityProfitability
-13.7%2/10

ROE of -13.7% — below average capital efficiency

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

Profit MarginProfitability
-23.1%1/10

Currently unprofitable

LW4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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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