Ingredion Incorporated (INGR) vs Lamb Weston (LW)

Ingredion Incorporated and Lamb Weston are both Packaged Foods companies. Ingredion Incorporated and Lamb Weston are of similar size ($6.2B and $6.1B). Ingredion Incorporated trades at the lower P/E: 10.4× against 20.8×. Lamb Weston grew revenue faster over the last twelve months: 2.50% against −1.38%. Ingredion Incorporated has the higher net margin (8.21% vs 4.39%) and the higher return on invested capital (10.0% vs 6.51%). Both pay a dividend; Ingredion Incorporated yields more (2.90% vs 1.25%). Across the 23 metrics below, Ingredion Incorporated leads on 17 and Lamb Weston on 6.

Valuation

Metric INGR LW Packaged Foods median
P/E 10.40 20.75 12.69
P/S 0.85 0.92 0.61
P/B 1.35 3.32 1.47
Price to free cash flow 12.70 10.83 8.50
EV/EBITDA 6.41 10.02 8.20
EV/Sales 0.96 1.50 0.85
Earnings yield 9.62% 4.82% 0.00%
Free cash flow yield 7.87% 9.23% 6.05%

Profitability

Metric INGR LW Packaged Foods median
Gross margin 23.73% 20.56% 27.54%
Operating margin 11.92% 8.94% 0.00%
Net margin 8.21% 4.39% 0.00%
Free cash flow margin 6.68% 8.45% 2.56%
Return on equity 13.54% 16.28% 0.00%
Return on assets 7.47% 3.93% 0.00%
Return on invested capital 10.04% 6.51% 0.00%

Growth

Metric INGR LW Packaged Foods median
Revenue growth (TTM) (1.38%) 2.50% 5.69%
EPS growth (last fiscal year) 15.14% (16.80%) —
Revenue growth, 5-year CAGR 3.81% 12.49% 3.81%
Net income growth, 5-year CAGR 15.94% (1.81%) 0.00%

Health

Metric INGR LW Packaged Foods median
Debt to equity 0.39 2.15 0.26
Current ratio 2.80 1.42 1.64
Net debt to EBITDA 0.61 3.89 0.87

Dividend

Metric INGR LW Packaged Foods median
Dividend yield 2.90% 1.25% 3.21%
Payout ratio 0.33 0.15 0.00

Size

Metric INGR LW Packaged Foods median
Market cap 6.09b 6.16b 245.45m

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