Herbalife Ltd (HLF) vs Westrock Coffee Company (WEST)

Herbalife Ltd and Westrock Coffee Company are both Packaged Foods companies. Herbalife Ltd is the larger, with a market value of $1.6B against $1.0B — 1.5× the size. Westrock Coffee Company has negative trailing earnings, so its P/E is not meaningful; Herbalife Ltd trades at 8.7×. Westrock Coffee Company grew revenue faster over the last twelve months: 16.3% against 6.35%. Herbalife Ltd has the higher net margin (3.41% vs −4.34%) and the higher return on invested capital (28.3% vs 0.00%). Across the 20 metrics below, Herbalife Ltd leads on 15 and Westrock Coffee Company on 5.

Valuation

Metric HLF WEST Packaged Foods median
P/E 8.67 n/m 12.84
P/S 0.30 0.81 0.67
P/B n/m n/m 1.58
Price to free cash flow 4.66 33.12 8.97
EV/EBITDA 4.94 21.40 8.34
EV/Sales 0.59 1.14 0.97
Earnings yield 11.53% (5.41%) 2.16%
Free cash flow yield 21.47% 3.02% 5.54%

Profitability

Metric HLF WEST Packaged Foods median
Gross margin 77.61% 13.07% 28.37%
Operating margin 9.57% (0.30%) 2.53%
Net margin 3.41% (4.34%) 0.53%
Free cash flow margin 6.39% 2.43% 2.31%
Return on equity (35.61%) 462.67% 0.00%
Return on assets 6.44% (4.76%) 0.00%
Return on invested capital 28.27% 0.00% 0.00%

Growth

Metric HLF WEST Packaged Foods median
Revenue growth (TTM) 6.35% 16.29% 3.59%
EPS growth (last fiscal year) (12.00%) (5.62%) 4.57%
Revenue growth, 5-year CAGR (1.89%) 16.63% 3.81%
Net income growth, 5-year CAGR (9.33%) 0.00% 0.00%

Health

Metric HLF WEST Packaged Foods median
Debt to equity (4.78) (1.26) 0.18
Current ratio 1.19 0.89 1.84
Net debt to EBITDA 2.72 24.63 0.73

Dividend

Metric HLF WEST Packaged Foods median
Dividend yield — — 3.68%
Payout ratio — — 0.62

Size

Metric HLF WEST Packaged Foods median
Market cap 1.56b 1.01b 268.23m

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