The Campbell's Company (CPB) vs Lamb Weston (LW)

The Campbell's Company and Lamb Weston are both Packaged Foods companies. The Campbell's Company and Lamb Weston are of similar size ($7.6B and $7.0B). The Campbell's Company trades at the lower P/E: 17.5× against 29.9×. Lamb Weston grew revenue faster over the last twelve months: 2.58% against −4.96%. The Campbell's Company has the higher net margin (4.14% vs 3.85%) and the lower return on invested capital (5.54% vs 5.80%). Both pay a dividend; The Campbell's Company yields more (6.05% vs 2.75%). Across the 23 metrics below, The Campbell's Company leads on 14 and Lamb Weston on 9.

Valuation

Metric CPB LW Packaged Foods median
P/E 17.51 29.92 12.84
P/S 0.72 1.15 0.67
P/B 1.81 4.22 1.58
Price to free cash flow 10.31 17.72 8.97
EV/EBITDA 10.06 12.38 8.34
EV/Sales 1.31 1.72 0.97
Earnings yield 5.71% 3.34% 2.16%
Free cash flow yield 9.70% 5.64% 5.54%

Profitability

Metric CPB LW Packaged Foods median
Gross margin 28.14% 19.38% 28.37%
Operating margin 8.74% 7.80% 2.53%
Net margin 4.14% 3.85% 0.53%
Free cash flow margin 6.96% 6.49% 2.31%
Return on equity 10.39% 14.17% 0.00%
Return on assets 2.64% 3.50% 0.00%
Return on invested capital 5.54% 5.80% 0.00%

Growth

Metric CPB LW Packaged Foods median
Revenue growth (TTM) (4.96%) 2.58% 3.59%
EPS growth (last fiscal year) (34.83%) (16.80%) 4.57%
Revenue growth, 5-year CAGR 2.83% 12.49% 3.81%
Net income growth, 5-year CAGR (16.65%) (1.81%) 0.00%

Health

Metric CPB LW Packaged Foods median
Debt to equity 1.60 2.17 0.18
Current ratio 0.82 1.45 1.84
Net debt to EBITDA 4.55 3.89 0.73

Dividend

Metric CPB LW Packaged Foods median
Dividend yield 6.05% 2.75% 3.68%
Payout ratio 1.08 0.83 0.62

Size

Metric CPB LW Packaged Foods median
Market cap 6.99b 7.59b 268.23m

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