WallStSmart

Hormel Foods Corporation (HRL)vsKellanova (K)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kellanova generates 4% more annual revenue ($12.67B vs $12.14B). HRL leads profitability with a 4.0% profit margin vs 0.1%. HRL appears more attractively valued with a PEG of 1.44. HRL earns a higher WallStSmart Score of 54/100 (C-).

HRL

Buy

54

out of 100

Grade: C-

Growth: 2.0Profit: 5.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 2.92

K

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 4.0Value: 3.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRLUndervalued (+53.6%)

Margin of Safety

+53.6%

Fair Value

$51.61

Current Price

$21.33

$30.28 discount

UndervaluedFair: $51.61Overvalued
KSignificantly Overvalued (-39.6%)

Margin of Safety

-39.6%

Fair Value

$59.76

Current Price

$83.44

$23.68 premium

UndervaluedFair: $59.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRL1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

K0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

HRL4 concerns · Avg: 2.5/10
Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

EPS GrowthGrowth
-5.1%2/10

Earnings declined 5.1%

K4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Return on EquityProfitability
0.3%3/10

ROE of 0.3% — below average capital efficiency

Profit MarginProfitability
0.1%3/10

0.1% margin — thin

Operating MarginProfitability
0.1%3/10

Operating margin of 0.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : HRL

The strongest argument for HRL centers on Price/Book. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : K

K has a balanced fundamental profile.

Bear Case : HRL

The primary concerns for HRL are Return on Equity, Profit Margin, Revenue Growth. Thin 4.0% margins leave little buffer for downturns.

Bear Case : K

The primary concerns for K are Revenue Growth, Return on Equity, Profit Margin. Thin 0.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

HRL carries more volatility with a beta of 0.36 — expect wider price swings.

K is growing revenue faster at 0.0% — sustainability is the question.

K generates stronger free cash flow (359M), providing more financial flexibility.

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

Bottom Line

HRL scores higher overall (54/100 vs 50/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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.

Kellanova

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States.

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