WallStSmart

Flowers Foods Inc (FLO)vsHormel Foods Corporation (HRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hormel Foods Corporation generates 132% more annual revenue ($12.22B vs $5.27B). HRL leads profitability with a 3.8% profit margin vs 1.4%. HRL appears more attractively valued with a PEG of 1.85. FLO earns a higher WallStSmart Score of 55/100 (C-).

FLO

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 6.0Quality: 4.0
Piotroski: 2/9Altman Z: 1.89

HRL

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 5.0Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FLOUndervalued (+65.4%)

Margin of Safety

+65.4%

Fair Value

$33.79

Current Price

$7.48

$26.31 discount

UndervaluedFair: $33.79Overvalued
HRLUndervalued (+48.1%)

Margin of Safety

+48.1%

Fair Value

$46.15

Current Price

$23.62

$22.53 discount

UndervaluedFair: $46.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FLO2 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
20.0%8/10

Earnings expanding 20.0% YoY

HRL1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

FLO4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.894/10

Grey zone — moderate risk

Market CapQuality
$1.65B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

HRL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
29.1x4/10

Moderate valuation

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : FLO

The strongest argument for FLO centers on Price/Book, EPS Growth.

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bear Case : FLO

The primary concerns for FLO are Altman Z-Score, Market Cap, Return on Equity. Debt-to-equity of 1.57 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.

Bear Case : HRL

The primary concerns for HRL are PEG Ratio, P/E Ratio, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

FLO carries more volatility with a beta of 0.41 — expect wider price swings.

FLO is growing revenue faster at 6.8% — sustainability is the question.

HRL generates stronger free cash flow (97M), providing more financial flexibility.

Monitor PACKAGED FOODS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FLO scores higher overall (55/100 vs 49/100). HRL offers better value entry with a 48.1% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Flowers Foods Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Flowers Foods, Inc. produces and markets packaged bakery products in the United States. The company is headquartered in Thomasville, Georgia.

Hormel Foods Corporation

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.

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