Conagra Brands (CAG) vs Smithfield Foods, Inc. (SFD)

Conagra Brands and Smithfield Foods, Inc. are both Packaged Foods companies. Conagra Brands and Smithfield Foods, Inc. are of similar size ($7.5B and $7.0B). Conagra Brands has negative trailing earnings, so its P/E is not meaningful; Smithfield Foods, Inc. trades at 7.1×. Smithfield Foods, Inc. grew revenue faster over the last twelve months: 4.25% against −2.85%. Smithfield Foods, Inc. has the higher net margin (6.84% vs −17.0%) and the higher return on invested capital (10.9% vs −7.61%). Across the 18 metrics below, Smithfield Foods, Inc. leads on 13 and Conagra Brands on 5.

Valuation

Metric CAG SFD Packaged Foods median
P/E n/m 7.05 12.69
P/S 0.61 0.48 0.61
P/B 1.08 1.07 1.47
Price to free cash flow 6.84 9.13 8.50
EV/EBITDA n/m 4.88 8.20
EV/Sales 1.23 0.53 0.85
Earnings yield (27.93%) 14.18% 0.00%
Free cash flow yield 14.62% 10.96% 6.05%

Profitability

Metric CAG SFD Packaged Foods median
Gross margin 23.92% 13.39% 27.54%
Operating margin (14.43%) 8.62% 0.00%
Net margin (16.99%) 6.84% 0.00%
Free cash flow margin 9.02% 5.31% 2.56%
Return on equity (25.06%) 15.92% 0.00%
Return on assets (10.03%) 9.13% 0.00%
Return on invested capital (7.61%) 10.89% 0.00%

Growth

Metric CAG SFD Packaged Foods median
Revenue growth (TTM) (2.85%) 4.25% 5.69%
EPS growth (last fiscal year) (266.67%) 0.00% —
Revenue growth, 5-year CAGR 0.17% — 3.81%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CAG SFD Packaged Foods median
Debt to equity 1.14 0.29 0.26
Current ratio 0.90 2.56 1.64
Net debt to EBITDA (5.69) 0.29 0.87

Dividend

Metric CAG SFD Packaged Foods median
Dividend yield 4.94% — 3.21%
Payout ratio 0.93 — 0.00

Size

Metric CAG SFD Packaged Foods median
Market cap 7.03b 7.52b 245.45m

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