Hormel Foods Corporation (HRL) vs Kraft Heinz Company (KHC)

Hormel Foods Corporation and Kraft Heinz Company are both Packaged Foods companies. Kraft Heinz Company is the larger, with a market value of $28.5B against $11.0B — 2.6× the size. Kraft Heinz Company has negative trailing earnings, so its P/E is not meaningful; Hormel Foods Corporation trades at 31.3×. Hormel Foods Corporation grew revenue faster over the last twelve months: 0.73% against −1.62%. Hormel Foods Corporation has the higher net margin (2.82% vs −13.6%) and the higher return on invested capital (3.64% vs −3.79%). Both pay a dividend; Kraft Heinz Company yields more (4.38% vs 3.80%). Across the 22 metrics below, Hormel Foods Corporation leads on 14 and Kraft Heinz Company on 8.

Valuation

Metric HRL KHC Packaged Foods median
P/E 31.29 n/m 12.69
P/S 0.89 1.12 0.61
P/B 1.38 0.78 1.47
Price to free cash flow 13.85 7.62 8.50
EV/EBITDA 16.81 8.47 8.20
EV/Sales 1.06 1.78 0.85
Earnings yield 3.20% (12.11%) 0.00%
Free cash flow yield 7.22% 13.13% 6.05%

Profitability

Metric HRL KHC Packaged Foods median
Gross margin 15.68% 33.37% 27.54%
Operating margin 3.47% (12.76%) 0.00%
Net margin 2.82% (13.64%) 0.00%
Free cash flow margin 6.45% 15.33% 2.56%
Return on equity 4.30% (8.75%) 0.00%
Return on assets 2.56% (4.39%) 0.00%
Return on invested capital 3.64% (3.79%) 0.00%

Growth

Metric HRL KHC Packaged Foods median
Revenue growth (TTM) 0.73% (1.62%) 5.69%
EPS growth (last fiscal year) (40.82%) (318.14%) —
Revenue growth, 5-year CAGR 4.73% (0.97%) 3.81%
Net income growth, 5-year CAGR (12.04%) 0.00% 0.00%

Health

Metric HRL KHC Packaged Foods median
Debt to equity 0.36 0.53 0.26
Current ratio 1.88 1.06 1.64
Net debt to EBITDA 2.27 3.13 0.87

Dividend

Metric HRL KHC Packaged Foods median
Dividend yield 3.80% 4.38% 3.21%
Payout ratio 0.68 0.63 0.00

Size

Metric HRL KHC Packaged Foods median
Market cap 10.97b 28.45b 245.45m

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