Conagra Brands (CAG) vs The Campbell's Company (CPB)

Conagra Brands and The Campbell's Company are both Packaged Foods companies. Conagra Brands and The Campbell's Company are of similar size ($7.4B and $7.0B). Conagra Brands has negative trailing earnings, so its P/E is not meaningful; The Campbell's Company trades at 17.5×. Conagra Brands grew revenue faster over the last twelve months: −1.80% against −4.96%. The Campbell's Company has the higher net margin (4.14% vs −17.0%) and the higher return on invested capital (5.54% vs −7.75%). Both pay a dividend; Conagra Brands yields more (6.80% vs 6.05%). Across the 21 metrics below, Conagra Brands leads on 11 and The Campbell's Company on 10.

Valuation

Metric CAG CPB Packaged Foods median
P/E n/m 17.51 12.84
P/S 0.66 0.72 0.67
P/B 1.15 1.81 1.58
Price to free cash flow 8.13 10.31 8.97
EV/EBITDA n/m 10.06 8.34
EV/Sales 1.31 1.31 0.97
Earnings yield (25.79%) 5.71% 2.16%
Free cash flow yield 12.30% 9.70% 5.54%

Profitability

Metric CAG CPB Packaged Foods median
Gross margin 23.80% 28.14% 28.37%
Operating margin (15.18%) 8.74% 2.53%
Net margin (16.95%) 4.14% 0.53%
Free cash flow margin 8.22% 6.96% 2.31%
Return on equity (24.89%) 10.39% 0.00%
Return on assets (9.81%) 2.64% 0.00%
Return on invested capital (7.75%) 5.54% 0.00%

Growth

Metric CAG CPB Packaged Foods median
Revenue growth (TTM) (1.80%) (4.96%) 3.59%
EPS growth (last fiscal year) (266.67%) (34.83%) 4.57%
Revenue growth, 5-year CAGR 0.17% 2.83% 3.81%
Net income growth, 5-year CAGR 0.00% (16.65%) 0.00%

Health

Metric CAG CPB Packaged Foods median
Debt to equity 1.21 1.60 0.18
Current ratio 1.10 0.82 1.84
Net debt to EBITDA (5.69) 4.55 0.73

Dividend

Metric CAG CPB Packaged Foods median
Dividend yield 6.80% 6.05% 3.68%
Payout ratio — 1.08 0.62

Size

Metric CAG CPB Packaged Foods median
Market cap 7.40b 6.99b 268.23m

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