Hormel Foods Corporation (HRL)vsThe J. M. Smucker Company (SJM)
HRL
Hormel Foods Corporation
$21.28
+1.82%
CONSUMER DEFENSIVE · Cap: $11.34B
SJM
The J. M. Smucker Company
$129.90
+2.88%
CONSUMER DEFENSIVE · Cap: $13.40B
Smart Verdict
WallStSmart Research — data-driven comparison
Hormel Foods Corporation generates 33% more annual revenue ($12.15B vs $9.16B). HRL leads profitability with a 2.8% profit margin vs 2.5%. HRL appears more attractively valued with a PEG of 1.44. SJM earns a higher WallStSmart Score of 51/100 (C-).
HRL
Hold50
out of 100
Grade: D+
SJM
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+46.1%
Fair Value
$44.44
Current Price
$21.28
$23.16 discount
Margin of Safety
+13.8%
Fair Value
$128.91
Current Price
$129.90
$0.99 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
ROE of 4.4% — below average capital efficiency
2.8% margin — thin
Revenue declined 2.4%
Expensive relative to growth rate
ROE of 4.0% — below average capital efficiency
2.5% margin — thin
Elevated debt levels
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 : SJM
The strongest argument for SJM centers on Price/Book.
Bear Case : HRL
The primary concerns for HRL are P/E Ratio, Return on Equity, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Bear Case : SJM
The primary concerns for SJM are PEG Ratio, Return on Equity, Profit Margin. A P/E of 57.8x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
HRL carries more volatility with a beta of 0.29 — expect wider price swings.
SJM is growing revenue faster at 5.0% — sustainability is the question.
SJM generates stronger free cash flow (337M), providing more financial flexibility.
Monitor PACKAGED FOODS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SJM scores higher overall (51/100 vs 50/100). HRL offers better value entry with a 46.1% 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.
The J. M. Smucker Company
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
The J. M. Smucker Company, also known as Smucker and Smucker's, is an American manufacturer of jam, peanut butter, jelly, fruit syrups, beverages, shortening, ice cream toppings, and other products in North America. Smucker's headquarters are located in Orrville, Ohio.
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