Herbalife Ltd (HLF) vs The Marzetti Company (MZTI)

Herbalife Ltd and The Marzetti Company are both Packaged Foods companies. The Marzetti Company is the larger, with a market value of $2.8B against $1.5B — 1.8× the size. Herbalife Ltd trades at the lower P/E: 9.1× against 15.0×. Herbalife Ltd grew revenue faster over the last twelve months: 5.52% against 1.08%. The Marzetti Company has the higher net margin (9.91% vs 3.16%) and the lower return on invested capital (12.2% vs 26.1%). Across the 21 metrics below, Herbalife Ltd leads on 11 and The Marzetti Company on 10.

Valuation

Metric HLF MZTI Packaged Foods median
P/E 9.13 14.99 13.41
P/S 0.29 1.48 0.62
P/B n/m 2.72 1.47
Price to free cash flow 4.73 12.63 8.73
EV/EBITDA 5.17 9.79 8.26
EV/Sales 0.61 1.57 0.91
Earnings yield 10.96% 6.67% 0.68%
Free cash flow yield 21.12% 7.92% 5.21%

Profitability

Metric HLF MZTI Packaged Foods median
Gross margin 77.70% 24.73% 27.54%
Operating margin 9.47% 12.37% 0.00%
Net margin 3.16% 9.91% 0.00%
Free cash flow margin 6.20% 11.73% 2.37%
Return on equity (29.29%) 18.64% 0.00%
Return on assets 5.87% 13.28% 0.00%
Return on invested capital 26.11% 12.16% 0.00%

Growth

Metric HLF MZTI Packaged Foods median
Revenue growth (TTM) 5.52% 1.08% 5.69%
EPS growth (last fiscal year) (12.00%) 14.99% 4.57%
Revenue growth, 5-year CAGR (1.89%) 5.64% 3.81%
Net income growth, 5-year CAGR (9.33%) 6.13% 0.00%

Health

Metric HLF MZTI Packaged Foods median
Debt to equity (4.32) 0.19 0.24
Current ratio 1.20 1.56 1.68
Net debt to EBITDA 2.72 0.56 0.84

Dividend

Metric HLF MZTI Packaged Foods median
Dividend yield — 3.83% 4.06%
Payout ratio — 0.57 0.57

Size

Metric HLF MZTI Packaged Foods median
Market cap 1.53b 2.82b 263.30m

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