Conagra Brands (CAG) vs Hormel Foods Corporation (HRL)

Conagra Brands and Hormel Foods Corporation are both Packaged Foods companies. Hormel Foods Corporation is the larger, with a market value of $11.0B against $7.0B — 1.6× the size. Conagra Brands has negative trailing earnings, so its P/E is not meaningful; Hormel Foods Corporation trades at 31.3×. Hormel Foods Corporation grew revenue faster over the last twelve months: 0.73% against −2.85%. Hormel Foods Corporation has the higher net margin (2.82% vs −17.0%) and the higher return on invested capital (3.64% vs −7.61%). Both pay a dividend; Conagra Brands yields more (4.94% vs 3.80%). Across the 21 metrics below, Hormel Foods Corporation leads on 12 and Conagra Brands on 9.

Valuation

Metric CAG HRL Packaged Foods median
P/E n/m 31.29 12.69
P/S 0.61 0.89 0.61
P/B 1.08 1.38 1.47
Price to free cash flow 6.84 13.85 8.50
EV/EBITDA n/m 16.81 8.20
EV/Sales 1.23 1.06 0.85
Earnings yield (27.93%) 3.20% 0.00%
Free cash flow yield 14.62% 7.22% 6.05%

Profitability

Metric CAG HRL Packaged Foods median
Gross margin 23.92% 15.68% 27.54%
Operating margin (14.43%) 3.47% 0.00%
Net margin (16.99%) 2.82% 0.00%
Free cash flow margin 9.02% 6.45% 2.56%
Return on equity (25.06%) 4.30% 0.00%
Return on assets (10.03%) 2.56% 0.00%
Return on invested capital (7.61%) 3.64% 0.00%

Growth

Metric CAG HRL Packaged Foods median
Revenue growth (TTM) (2.85%) 0.73% 5.69%
EPS growth (last fiscal year) (266.67%) (40.82%) —
Revenue growth, 5-year CAGR 0.17% 4.73% 3.81%
Net income growth, 5-year CAGR 0.00% (12.04%) 0.00%

Health

Metric CAG HRL Packaged Foods median
Debt to equity 1.14 0.36 0.26
Current ratio 0.90 1.88 1.64
Net debt to EBITDA (5.69) 2.27 0.87

Dividend

Metric CAG HRL Packaged Foods median
Dividend yield 4.94% 3.80% 3.21%
Payout ratio 0.93 0.68 0.00

Size

Metric CAG HRL Packaged Foods median
Market cap 7.03b 10.97b 245.45m

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