Lamb Weston (LW) vs Post Holdings, Inc. (POST)

Lamb Weston and Post Holdings, Inc. are both Packaged Foods companies. Lamb Weston is the larger, with a market value of $6.2B against $3.3B — 1.9× the size. Post Holdings, Inc. trades at the lower P/E: 12.3× against 20.8×. Post Holdings, Inc. grew revenue faster over the last twelve months: 6.20% against 2.50%. Lamb Weston has the higher net margin (4.39% vs 3.48%) and the higher return on invested capital (6.51% vs 4.83%). Across the 22 metrics below, Post Holdings, Inc. leads on 14 and Lamb Weston on 8.

Valuation

Metric LW POST Packaged Foods median
P/E 20.75 12.34 12.69
P/S 0.92 0.39 0.61
P/B 3.32 1.07 1.47
Price to free cash flow 10.83 5.63 8.50
EV/EBITDA 10.02 7.57 8.20
EV/Sales 1.50 1.27 0.85
Earnings yield 4.82% 8.11% 0.00%
Free cash flow yield 9.23% 17.75% 6.05%

Profitability

Metric LW POST Packaged Foods median
Gross margin 20.56% 28.82% 27.54%
Operating margin 8.94% 9.60% 0.00%
Net margin 4.39% 3.48% 0.00%
Free cash flow margin 8.45% 6.96% 2.56%
Return on equity 16.28% 8.26% 0.00%
Return on assets 3.93% 2.24% 0.00%
Return on invested capital 6.51% 4.83% 0.00%

Growth

Metric LW POST Packaged Foods median
Revenue growth (TTM) 2.50% 6.20% 5.69%
EPS growth (last fiscal year) (16.80%) (2.30%) —
Revenue growth, 5-year CAGR 12.49% 11.61% 3.81%
Net income growth, 5-year CAGR (1.81%) 234.64% 0.00%

Health

Metric LW POST Packaged Foods median
Debt to equity 2.15 2.47 0.26
Current ratio 1.42 1.85 1.64
Net debt to EBITDA 3.89 5.35 0.87

Dividend

Metric LW POST Packaged Foods median
Dividend yield 1.25% — 3.21%
Payout ratio 0.15 0.00 0.00

Size

Metric LW POST Packaged Foods median
Market cap 6.16b 3.26b 245.45m

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