Flowers Foods, Inc. (FLO) vs Herbalife Ltd (HLF)

Flowers Foods, Inc. and Herbalife Ltd are both Packaged Foods companies. Flowers Foods, Inc. and Herbalife Ltd are of similar size ($1.3B and $1.2B). Herbalife Ltd trades at the lower P/E: 7.8× against 22.1×. Herbalife Ltd grew revenue faster over the last twelve months: 5.52% against 2.46%. Herbalife Ltd has the higher net margin (3.16% vs 1.06%) and the higher return on invested capital (26.1% vs 3.03%). Across the 21 metrics below, Herbalife Ltd leads on 17 and Flowers Foods, Inc. on 4.

Valuation

Metric FLO HLF Packaged Foods median
P/E 22.08 7.84 12.69
P/S 0.23 0.25 0.61
P/B 0.92 n/m 1.47
Price to free cash flow 4.11 4.07 8.50
EV/EBITDA 9.30 4.82 8.20
EV/Sales 0.55 0.57 0.85
Earnings yield 4.53% 12.75% 0.00%
Free cash flow yield 24.35% 24.58% 6.05%

Profitability

Metric FLO HLF Packaged Foods median
Gross margin 48.63% 77.70% 27.54%
Operating margin 2.74% 9.47% 0.00%
Net margin 1.06% 3.16% 0.00%
Free cash flow margin 5.87% 6.20% 2.56%
Return on equity 4.01% (29.29%) 0.00%
Return on assets 1.29% 5.87% 0.00%
Return on invested capital 3.03% 26.11% 0.00%

Growth

Metric FLO HLF Packaged Foods median
Revenue growth (TTM) 2.46% 5.52% 5.69%
EPS growth (last fiscal year) (65.81%) (12.00%) —
Revenue growth, 5-year CAGR 3.68% (1.89%) 3.81%
Net income growth, 5-year CAGR (11.26%) (9.33%) 0.00%

Health

Metric FLO HLF Packaged Foods median
Debt to equity 1.27 (4.32) 0.26
Current ratio 0.77 1.20 1.64
Net debt to EBITDA 5.11 2.72 0.87

Dividend

Metric FLO HLF Packaged Foods median
Dividend yield 3.99% — 3.21%
Payout ratio 0.85 0.00 0.00

Size

Metric FLO HLF Packaged Foods median
Market cap 1.24b 1.28b 245.45m

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