Lamb Weston (LW) vs The J. M. Smucker Company (SJM)

Lamb Weston and The J. M. Smucker Company are both Packaged Foods companies. The J. M. Smucker Company is the larger, with a market value of $13.5B against $7.5B — 1.8× the size. Lamb Weston trades at the lower P/E: 28.9× against 59.3×. The J. M. Smucker Company grew revenue faster over the last twelve months: 5.08% against 2.58%. Lamb Weston has the higher net margin (3.85% vs 2.51%) and the higher return on invested capital (5.80% vs 4.15%). Both pay a dividend; The J. M. Smucker Company yields more (3.47% vs 2.82%). Across the 23 metrics below, The J. M. Smucker Company leads on 12 and Lamb Weston on 11.

Valuation

Metric LW SJM Packaged Foods median
P/E 28.94 59.27 13.41
P/S 1.11 1.49 0.62
P/B 4.08 2.37 1.47
Price to free cash flow 17.16 8.57 8.73
EV/EBITDA 12.12 10.78 8.26
EV/Sales 1.68 2.22 0.91
Earnings yield 3.45% 1.69% 0.68%
Free cash flow yield 5.83% 11.67% 5.21%

Profitability

Metric LW SJM Packaged Foods median
Gross margin 19.38% 38.65% 27.54%
Operating margin 7.80% 9.02% 0.00%
Net margin 3.85% 2.51% 0.00%
Free cash flow margin 6.49% 17.35% 2.37%
Return on equity 14.17% 3.93% 0.00%
Return on assets 3.50% 1.35% 0.00%
Return on invested capital 5.80% 4.15% 0.00%

Growth

Metric LW SJM Packaged Foods median
Revenue growth (TTM) 2.58% 5.08% 5.69%
EPS growth (last fiscal year) (16.80%) 88.75% 4.57%
Revenue growth, 5-year CAGR 12.49% 2.49% 3.81%
Net income growth, 5-year CAGR (1.81%) 0.00% 0.00%

Health

Metric LW SJM Packaged Foods median
Debt to equity 2.17 1.17 0.24
Current ratio 1.45 0.87 1.68
Net debt to EBITDA 3.89 4.85 0.84

Dividend

Metric LW SJM Packaged Foods median
Dividend yield 2.82% 3.47% 4.06%
Payout ratio 0.82 2.07 0.57

Size

Metric LW SJM Packaged Foods median
Market cap 7.47b 13.45b 263.30m

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