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

Lamb Weston and Smithfield Foods, Inc. are both Packaged Foods companies. Lamb Weston and Smithfield Foods, Inc. are of similar size ($7.5B and $7.3B). Smithfield Foods, Inc. trades at the lower P/E: 6.9× against 28.9×. Smithfield Foods, Inc. grew revenue faster over the last twelve months: 4.25% against 2.58%. Smithfield Foods, Inc. has the higher net margin (6.84% vs 3.85%) and the higher return on invested capital (10.9% vs 5.80%). Both pay a dividend; Smithfield Foods, Inc. yields more (6.38% vs 2.82%). Across the 21 metrics below, Smithfield Foods, Inc. leads on 19 and Lamb Weston on 2.

Valuation

Metric LW SFD Packaged Foods median
P/E 28.94 6.90 13.41
P/S 1.11 0.47 0.62
P/B 4.08 1.05 1.47
Price to free cash flow 17.16 8.94 8.73
EV/EBITDA 12.12 4.78 8.26
EV/Sales 1.68 0.52 0.91
Earnings yield 3.45% 14.48% 0.68%
Free cash flow yield 5.83% 11.19% 5.21%

Profitability

Metric LW SFD Packaged Foods median
Gross margin 19.38% 13.39% 27.54%
Operating margin 7.80% 8.62% 0.00%
Net margin 3.85% 6.84% 0.00%
Free cash flow margin 6.49% 5.31% 2.37%
Return on equity 14.17% 15.92% 0.00%
Return on assets 3.50% 9.13% 0.00%
Return on invested capital 5.80% 10.89% 0.00%

Growth

Metric LW SFD Packaged Foods median
Revenue growth (TTM) 2.58% 4.25% 5.69%
EPS growth (last fiscal year) (16.80%) 0.00% 4.57%
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 2.17 0.29 0.24
Current ratio 1.45 2.56 1.68
Net debt to EBITDA 3.89 0.29 0.84

Dividend

Metric LW SFD Packaged Foods median
Dividend yield 2.82% 6.38% 4.06%
Payout ratio 0.82 0.44 0.57

Size

Metric LW SFD Packaged Foods median
Market cap 7.47b 7.28b 263.30m

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