Hormel Foods Corporation (HRL) vs Smithfield Foods, Inc. (SFD)

Hormel Foods Corporation and Smithfield Foods, Inc. are both Packaged Foods companies. Hormel Foods Corporation is the larger, with a market value of $11.0B against $7.5B — 1.5× the size. Smithfield Foods, Inc. trades at the lower P/E: 7.1× against 31.3×. Smithfield Foods, Inc. grew revenue faster over the last twelve months: 4.25% against 0.73%. Smithfield Foods, Inc. has the higher net margin (6.84% vs 2.82%) and the higher return on invested capital (10.9% vs 3.64%). Across the 20 metrics below, Smithfield Foods, Inc. leads on 18 and Hormel Foods Corporation on 2.

Valuation

Metric HRL SFD Packaged Foods median
P/E 31.29 7.05 12.69
P/S 0.89 0.48 0.61
P/B 1.38 1.07 1.47
Price to free cash flow 13.85 9.13 8.50
EV/EBITDA 16.81 4.88 8.20
EV/Sales 1.06 0.53 0.85
Earnings yield 3.20% 14.18% 0.00%
Free cash flow yield 7.22% 10.96% 6.05%

Profitability

Metric HRL SFD Packaged Foods median
Gross margin 15.68% 13.39% 27.54%
Operating margin 3.47% 8.62% 0.00%
Net margin 2.82% 6.84% 0.00%
Free cash flow margin 6.45% 5.31% 2.56%
Return on equity 4.30% 15.92% 0.00%
Return on assets 2.56% 9.13% 0.00%
Return on invested capital 3.64% 10.89% 0.00%

Growth

Metric HRL SFD Packaged Foods median
Revenue growth (TTM) 0.73% 4.25% 5.69%
EPS growth (last fiscal year) (40.82%) 0.00% —
Revenue growth, 5-year CAGR 4.73% — 3.81%
Net income growth, 5-year CAGR (12.04%) — 0.00%

Health

Metric HRL SFD Packaged Foods median
Debt to equity 0.36 0.29 0.26
Current ratio 1.88 2.56 1.64
Net debt to EBITDA 2.27 0.29 0.87

Dividend

Metric HRL SFD Packaged Foods median
Dividend yield 3.80% — 3.21%
Payout ratio 0.68 — 0.00

Size

Metric HRL SFD Packaged Foods median
Market cap 10.97b 7.52b 245.45m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack