Conagra Brands (CAG) vs Lamb Weston (LW)

Conagra Brands and Lamb Weston are both Packaged Foods companies. Conagra Brands is the larger, with a market value of $7.0B against $6.2B — 1.1× the size. Conagra Brands has negative trailing earnings, so its P/E is not meaningful; Lamb Weston trades at 20.8×. Lamb Weston grew revenue faster over the last twelve months: 2.50% against −2.85%. Lamb Weston has the higher net margin (4.39% vs −17.0%) and the higher return on invested capital (6.51% vs −7.61%). Both pay a dividend; Conagra Brands yields more (4.94% vs 1.25%). Across the 21 metrics below, Conagra Brands leads on 11 and Lamb Weston on 10.

Valuation

Metric CAG LW Packaged Foods median
P/E n/m 20.75 12.69
P/S 0.61 0.92 0.61
P/B 1.08 3.32 1.47
Price to free cash flow 6.84 10.83 8.50
EV/EBITDA n/m 10.02 8.20
EV/Sales 1.23 1.50 0.85
Earnings yield (27.93%) 4.82% 0.00%
Free cash flow yield 14.62% 9.23% 6.05%

Profitability

Metric CAG LW Packaged Foods median
Gross margin 23.92% 20.56% 27.54%
Operating margin (14.43%) 8.94% 0.00%
Net margin (16.99%) 4.39% 0.00%
Free cash flow margin 9.02% 8.45% 2.56%
Return on equity (25.06%) 16.28% 0.00%
Return on assets (10.03%) 3.93% 0.00%
Return on invested capital (7.61%) 6.51% 0.00%

Growth

Metric CAG LW Packaged Foods median
Revenue growth (TTM) (2.85%) 2.50% 5.69%
EPS growth (last fiscal year) (266.67%) (16.80%) —
Revenue growth, 5-year CAGR 0.17% 12.49% 3.81%
Net income growth, 5-year CAGR 0.00% (1.81%) 0.00%

Health

Metric CAG LW Packaged Foods median
Debt to equity 1.14 2.15 0.26
Current ratio 0.90 1.42 1.64
Net debt to EBITDA (5.69) 3.89 0.87

Dividend

Metric CAG LW Packaged Foods median
Dividend yield 4.94% 1.25% 3.21%
Payout ratio 0.93 0.15 0.00

Size

Metric CAG LW Packaged Foods median
Market cap 7.03b 6.16b 245.45m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack