Hormel Foods Corporation (HRL) vs Pilgrim's Pride Corporation (PPC)

Hormel Foods Corporation and Pilgrim's Pride Corporation are both Packaged Foods companies. Hormel Foods Corporation is the larger, with a market value of $11.1B against $6.9B — 1.6× the size. Pilgrim's Pride Corporation trades at the lower P/E: 12.8× against 32.4×. Pilgrim's Pride Corporation grew revenue faster over the last twelve months: 1.42% against 0.73%. Pilgrim's Pride Corporation has the higher net margin (2.96% vs 2.82%) and the higher return on invested capital (9.29% vs 3.64%). Only Hormel Foods Corporation pays a dividend (5.74%). Across the 23 metrics below, Pilgrim's Pride Corporation leads on 15 and Hormel Foods Corporation on 8.

Valuation

Metric HRL PPC Packaged Foods median
P/E 32.38 12.80 13.41
P/S 0.92 0.38 0.62
P/B 1.43 1.86 1.47
Price to free cash flow 14.33 22.06 8.73
EV/EBITDA 17.31 6.70 8.26
EV/Sales 1.09 0.51 0.91
Earnings yield 3.09% 7.82% 0.68%
Free cash flow yield 6.98% 4.53% 5.21%

Profitability

Metric HRL PPC Packaged Foods median
Gross margin 15.68% 9.62% 27.54%
Operating margin 3.47% 5.02% 0.00%
Net margin 2.82% 2.96% 0.00%
Free cash flow margin 6.45% 1.72% 2.37%
Return on equity 4.30% 14.52% 0.00%
Return on assets 2.56% 5.42% 0.00%
Return on invested capital 3.64% 9.29% 0.00%

Growth

Metric HRL PPC Packaged Foods median
Revenue growth (TTM) 0.73% 1.42% 5.69%
EPS growth (last fiscal year) (40.82%) (0.66%) 4.57%
Revenue growth, 5-year CAGR 4.73% 8.87% 3.81%
Net income growth, 5-year CAGR (12.04%) 62.76% 0.00%

Health

Metric HRL PPC Packaged Foods median
Debt to equity 0.36 0.76 0.24
Current ratio 1.88 1.36 1.68
Net debt to EBITDA 2.27 1.18 0.84

Dividend

Metric HRL PPC Packaged Foods median
Dividend yield 5.74% 0.00% 4.06%
Payout ratio 1.86 0.00 0.57

Size

Metric HRL PPC Packaged Foods median
Market cap 11.11b 6.88b 263.30m

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