Hormel Foods Corporation (HRL)vsPilgrims Pride Corp (PPC)
HRL
Hormel Foods Corporation
$23.62
+1.42%
CONSUMER DEFENSIVE · Cap: $13.62B
PPC
Pilgrims Pride Corp
$29.88
+3.14%
CONSUMER DEFENSIVE · Cap: $7.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Pilgrims Pride Corp generates 52% more annual revenue ($18.57B vs $12.22B). PPC leads profitability with a 4.8% profit margin vs 3.8%. PPC appears more attractively valued with a PEG of 0.49. PPC earns a higher WallStSmart Score of 56/100 (C).
HRL
Hold49
out of 100
Grade: D+
PPC
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+48.1%
Fair Value
$46.15
Current Price
$23.62
$22.53 discount
Margin of Safety
-21.4%
Fair Value
$35.59
Current Price
$29.88
$5.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 24 in profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 5.9% — below average capital efficiency
3.8% margin — thin
1.6% revenue growth
4.8% margin — thin
Operating margin of 4.2%
Earnings declined 65.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : HRL
The strongest argument for HRL centers on Price/Book.
Bull Case : PPC
The strongest argument for PPC centers on PEG Ratio, P/E Ratio, Altman Z-Score. PEG of 0.49 suggests the stock is reasonably priced for its growth.
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 : PPC
The primary concerns for PPC are Revenue Growth, Profit Margin, Operating Margin. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
HRL carries more volatility with a beta of 0.34 — expect wider price swings.
PPC is growing revenue faster at 1.6% — 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
PPC scores higher overall (56/100 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.
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.
Pilgrims Pride Corp
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Pilgrim's Pride Corporation produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products to retailers, distributors and food service operators in the United States, the United Kingdom, Mexico, France, Puerto Rico, the Countries Low, rest of Europe, Middle East, Asia and internationally. The company is headquartered in Greeley, Colorado.
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