Herbalife Ltd (HLF) vs The Simply Good Foods Company (SMPL)

Herbalife Ltd and The Simply Good Foods Company are both Packaged Foods companies. Herbalife Ltd is the larger, with a market value of $1.3B against $834.2M — 1.5× the size. The Simply Good Foods Company has negative trailing earnings, so its P/E is not meaningful; Herbalife Ltd trades at 7.8×. Herbalife Ltd grew revenue faster over the last twelve months: 5.52% against −4.48%. Herbalife Ltd has the higher net margin (3.16% vs −14.3%) and the higher return on invested capital (26.1% vs −8.77%). Across the 19 metrics below, Herbalife Ltd leads on 13 and The Simply Good Foods Company on 6.

Valuation

Metric HLF SMPL Packaged Foods median
P/E 7.84 n/m 12.69
P/S 0.25 0.62 0.61
P/B n/m 0.61 1.47
Price to free cash flow 4.07 7.36 8.50
EV/EBITDA 4.82 n/m 8.20
EV/Sales 0.57 0.82 0.85
Earnings yield 12.75% (22.60%) 0.00%
Free cash flow yield 24.58% 13.59% 6.05%

Profitability

Metric HLF SMPL Packaged Foods median
Gross margin 77.70% 32.73% 27.54%
Operating margin 9.47% (17.05%) 0.00%
Net margin 3.16% (14.28%) 0.00%
Free cash flow margin 6.20% 8.58% 2.56%
Return on equity (29.29%) (12.20%) 0.00%
Return on assets 5.87% (8.85%) 0.00%
Return on invested capital 26.11% (8.77%) 0.00%

Growth

Metric HLF SMPL Packaged Foods median
Revenue growth (TTM) 5.52% (4.48%) 5.69%
EPS growth (last fiscal year) (12.00%) (26.09%) —
Revenue growth, 5-year CAGR (1.89%) 12.18% 3.81%
Net income growth, 5-year CAGR (9.33%) 9.56% 0.00%

Health

Metric HLF SMPL Packaged Foods median
Debt to equity (4.32) 0.28 0.26
Current ratio 1.20 4.80 1.64
Net debt to EBITDA 2.72 0.81 0.87

Dividend

Metric HLF SMPL Packaged Foods median
Dividend yield — — 3.21%
Payout ratio 0.00 0.00 0.00

Size

Metric HLF SMPL Packaged Foods median
Market cap 1.28b 834.18m 245.45m

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