WallStSmart

Hormel Foods Corporation (HRL)vsSmithfield Foods, Inc. Common Stock (SFD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Smithfield Foods, Inc. Common Stock generates 27% more annual revenue ($15.56B vs $12.22B). SFD leads profitability with a 6.5% profit margin vs 3.8%. SFD trades at a lower P/E of 10.4x. HRL earns a higher WallStSmart Score of 49/100 (D+).

HRL

Hold

49

out of 100

Grade: D+

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

SFD

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 5.5Value: 6.7Quality: 8.0
Piotroski: 4/9Altman Z: 3.23
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 SFD.

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

SFD3 strengths · Avg: 9.3/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.2310/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

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

SFD3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Profit MarginProfitability
6.5%3/10

6.5% margin — thin

Free Cash FlowQuality
$-153.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HRL

The strongest argument for HRL centers on Price/Book.

Bull Case : SFD

The strongest argument for SFD centers on P/E Ratio, Altman Z-Score, Price/Book.

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 : SFD

The primary concerns for SFD are Revenue Growth, Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

SFD is growing revenue faster at 0.8% — 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

HRL scores higher overall (49/100 vs 48/100). Both earn "Hold" 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.

Smithfield Foods, Inc. Common Stock

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Smithfield Foods, Inc. manufactures and markets packaged meats and fresh pork in the United States and internationally.

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