Conagra Brands (CAG) vs The J. M. Smucker Company (SJM)

Conagra Brands and The J. M. Smucker Company are both Packaged Foods companies. The J. M. Smucker Company is the larger, with a market value of $13.1B against $7.0B — 1.9× the size. Conagra Brands has negative trailing earnings, so its P/E is not meaningful; The J. M. Smucker Company trades at 56.3×. The J. M. Smucker Company grew revenue faster over the last twelve months: 5.08% against −2.85%. The J. M. Smucker Company has the higher net margin (2.51% vs −17.0%) and the higher return on invested capital (4.15% vs −7.61%). Both pay a dividend; Conagra Brands yields more (4.94% vs 3.21%). Across the 20 metrics below, The J. M. Smucker Company leads on 11 and Conagra Brands on 9.

Valuation

Metric CAG SJM Packaged Foods median
P/E n/m 56.28 12.69
P/S 0.61 1.41 0.61
P/B 1.08 2.25 1.47
Price to free cash flow 6.84 8.13 8.50
EV/EBITDA n/m 10.42 8.20
EV/Sales 1.23 2.14 0.85
Earnings yield (27.93%) 1.78% 0.00%
Free cash flow yield 14.62% 12.30% 6.05%

Profitability

Metric CAG SJM Packaged Foods median
Gross margin 23.92% 38.65% 27.54%
Operating margin (14.43%) 9.02% 0.00%
Net margin (16.99%) 2.51% 0.00%
Free cash flow margin 9.02% 17.35% 2.56%
Return on equity (25.06%) 3.93% 0.00%
Return on assets (10.03%) 1.35% 0.00%
Return on invested capital (7.61%) 4.15% 0.00%

Growth

Metric CAG SJM Packaged Foods median
Revenue growth (TTM) (2.85%) 5.08% 5.69%
EPS growth (last fiscal year) (266.67%) 88.75% —
Revenue growth, 5-year CAGR 0.17% 2.49% 3.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CAG SJM Packaged Foods median
Debt to equity 1.14 1.17 0.26
Current ratio 0.90 0.87 1.64
Net debt to EBITDA (5.69) 4.85 0.87

Dividend

Metric CAG SJM Packaged Foods median
Dividend yield 4.94% 3.21% 3.21%
Payout ratio 0.93 0.61 0.00

Size

Metric CAG SJM Packaged Foods median
Market cap 7.03b 13.07b 245.45m

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