Lamb Weston (LW) vs Smithfield Foods, Inc. (SFD)

Lamb Weston and Smithfield Foods, Inc. are both Packaged Foods companies. Smithfield Foods, Inc. is the larger, with a market value of $7.5B against $6.2B — 1.2× the size. Smithfield Foods, Inc. trades at the lower P/E: 7.1× against 20.8×. Smithfield Foods, Inc. grew revenue faster over the last twelve months: 4.25% against 2.50%. Smithfield Foods, Inc. has the higher net margin (6.84% vs 4.39%) and the higher return on invested capital (10.9% vs 6.51%). Across the 20 metrics below, Smithfield Foods, Inc. leads on 16 and Lamb Weston on 4.

Valuation

Metric LW SFD Packaged Foods median
P/E 20.75 7.05 12.69
P/S 0.92 0.48 0.61
P/B 3.32 1.07 1.47
Price to free cash flow 10.83 9.13 8.50
EV/EBITDA 10.02 4.88 8.20
EV/Sales 1.50 0.53 0.85
Earnings yield 4.82% 14.18% 0.00%
Free cash flow yield 9.23% 10.96% 6.05%

Profitability

Metric LW SFD Packaged Foods median
Gross margin 20.56% 13.39% 27.54%
Operating margin 8.94% 8.62% 0.00%
Net margin 4.39% 6.84% 0.00%
Free cash flow margin 8.45% 5.31% 2.56%
Return on equity 16.28% 15.92% 0.00%
Return on assets 3.93% 9.13% 0.00%
Return on invested capital 6.51% 10.89% 0.00%

Growth

Metric LW SFD Packaged Foods median
Revenue growth (TTM) 2.50% 4.25% 5.69%
EPS growth (last fiscal year) (16.80%) 0.00% —
Revenue growth, 5-year CAGR 12.49% — 3.81%
Net income growth, 5-year CAGR (1.81%) — 0.00%

Health

Metric LW SFD Packaged Foods median
Debt to equity 2.15 0.29 0.26
Current ratio 1.42 2.56 1.64
Net debt to EBITDA 3.89 0.29 0.87

Dividend

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

Size

Metric LW SFD Packaged Foods median
Market cap 6.16b 7.52b 245.45m

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