WallStSmart

Hormel Foods Corporation (HRL)vsLifeway Foods Inc (LWAY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Hormel Foods Corporation generates 5226% more annual revenue ($12.22B vs $229.42M). LWAY leads profitability with a 6.5% profit margin vs 3.8%. HRL appears more attractively valued with a PEG of 1.85. LWAY earns a higher WallStSmart Score of 60/100 (C+).

HRL

Hold

49

out of 100

Grade: D+

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

LWAY

Buy

60

out of 100

Grade: C+

Growth: 9.3Profit: 6.5Value: 4.3Quality: 8.0
Piotroski: 3/9Altman Z: 6.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRLUndervalued (+48.1%)

Margin of Safety

+48.1%

Fair Value

$46.15

Current Price

$23.62

$22.53 discount

UndervaluedFair: $46.15Overvalued

Intrinsic value data unavailable for LWAY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Reasonable price relative to book value

LWAY4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
36.7%10/10

Revenue surging 36.7% year-over-year

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6410/10

Safe zone — low bankruptcy risk

EPS GrowthGrowth
30.4%8/10

Earnings expanding 30.4% YoY

Areas to Watch

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

LWAY4 concerns · Avg: 2.8/10
Market CapQuality
$359.12M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.502/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bull Case : LWAY

The strongest argument for LWAY centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 36.7% demonstrates continued momentum.

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.

Bear Case : LWAY

The primary concerns for LWAY are Market Cap, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

HRL profiles as a value stock while LWAY is a hypergrowth play — different risk/reward profiles.

LWAY carries more volatility with a beta of 0.48 — expect wider price swings.

LWAY is growing revenue faster at 36.7% — sustainability is the question.

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

Bottom Line

LWAY scores higher overall (60/100 vs 49/100) and 36.7% revenue growth. 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.

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.

Lifeway Foods Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. The company is headquartered in Morton Grove, Illinois.

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