Hormel Foods Corporation (HRL)vsMcCormick & Company Incorporated (MKC-V)
HRL
Hormel Foods Corporation
$21.33
-0.65%
CONSUMER DEFENSIVE · Cap: $11.74B
MKC-V
McCormick & Company Incorporated
$48.96
-3.73%
CONSUMER DEFENSIVE · Cap: $13.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Hormel Foods Corporation generates 71% more annual revenue ($12.14B vs $7.11B). MKC-V leads profitability with a 23.1% profit margin vs 4.0%. HRL appears more attractively valued with a PEG of 1.44. MKC-V earns a higher WallStSmart Score of 74/100 (B).
HRL
Buy54
out of 100
Grade: C-
MKC-V
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.6%
Fair Value
$51.61
Current Price
$21.33
$30.28 discount
Margin of Safety
+81.0%
Fair Value
$379.48
Current Price
$48.96
$330.52 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Earnings expanding 528.0% YoY
Every $100 of equity generates 25 in profit
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
16.7% revenue growth
Areas to Watch
ROE of 6.1% — below average capital efficiency
4.0% margin — thin
Revenue declined 2.9%
Earnings declined 5.1%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : MKC-V
The strongest argument for MKC-V centers on P/E Ratio, EPS Growth, Return on Equity. Profitability is solid with margins at 23.1% and operating margin at 14.3%. Revenue growth of 16.7% demonstrates continued momentum.
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 : MKC-V
The primary concerns for MKC-V are PEG Ratio.
Key Dynamics to Monitor
HRL profiles as a value stock while MKC-V is a growth play — different risk/reward profiles.
MKC-V carries more volatility with a beta of 0.71 — expect wider price swings.
MKC-V is growing revenue faster at 16.7% — sustainability is the question.
HRL generates stronger free cash flow (280M), providing more financial flexibility.
Bottom Line
MKC-V scores higher overall (74/100 vs 54/100), backed by strong 23.1% margins and 16.7% revenue growth. HRL offers better value entry with a 53.6% margin of safety. Both earn "Strong 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.
McCormick & Company Incorporated
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
McCormick & Company is an American multinational food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products to retail outlets, food manufacturers, and foodservice businesses.
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