General Mills, Inc. (GIS) vs Lamb Weston (LW)

General Mills, Inc. and Lamb Weston are both Packaged Foods companies. General Mills, Inc. is the larger, with a market value of $17.6B against $7.5B — 2.4× the size. General Mills, Inc. has negative trailing earnings, so its P/E is not meaningful; Lamb Weston trades at 28.9×. Lamb Weston grew revenue faster over the last twelve months: 2.58% against −4.49%. Lamb Weston has the higher net margin (3.85% vs −4.89%) and the higher return on invested capital (5.80% vs −0.63%). Both pay a dividend; General Mills, Inc. yields more (7.36% vs 2.82%). Across the 22 metrics below, Lamb Weston leads on 13 and General Mills, Inc. on 9.

Valuation

Metric GIS LW Packaged Foods median
P/E n/m 28.94 13.41
P/S 0.97 1.11 0.62
P/B 2.39 4.08 1.47
Price to free cash flow 11.50 17.16 8.73
EV/EBITDA 87.98 12.12 8.26
EV/Sales 1.68 1.68 0.91
Earnings yield (4.98%) 3.45% 0.68%
Free cash flow yield 8.70% 5.83% 5.21%

Profitability

Metric GIS LW Packaged Foods median
Gross margin 33.61% 19.38% 27.54%
Operating margin (1.13%) 7.80% 0.00%
Net margin (4.89%) 3.85% 0.00%
Free cash flow margin 8.46% 6.49% 2.37%
Return on equity (10.54%) 14.17% 0.00%
Return on assets (2.83%) 3.50% 0.00%
Return on invested capital (0.63%) 5.80% 0.00%

Growth

Metric GIS LW Packaged Foods median
Revenue growth (TTM) (4.49%) 2.58% 5.69%
EPS growth (last fiscal year) (103.90%) (16.80%) 4.57%
Revenue growth, 5-year CAGR 0.33% 12.49% 3.81%
Net income growth, 5-year CAGR 0.00% (1.81%) 0.00%

Health

Metric GIS LW Packaged Foods median
Debt to equity 1.80 2.17 0.24
Current ratio 0.70 1.45 1.68
Net debt to EBITDA 9.03 3.89 0.84

Dividend

Metric GIS LW Packaged Foods median
Dividend yield 7.36% 2.82% 4.06%
Payout ratio — 0.82 0.57

Size

Metric GIS LW Packaged Foods median
Market cap 17.58b 7.47b 263.30m

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