Hormel Foods Corporation (HRL)vsTarget Corporation (TGT)
HRL
Hormel Foods Corporation
$23.62
+1.42%
CONSUMER DEFENSIVE · Cap: $13.62B
TGT
Target Corporation
$122.57
-1.03%
CONSUMER DEFENSIVE · Cap: $60.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 771% more annual revenue ($106.38B vs $12.22B). HRL leads profitability with a 3.8% profit margin vs 3.2%. HRL appears more attractively valued with a PEG of 1.85. TGT earns a higher WallStSmart Score of 52/100 (C-).
HRL
Hold49
out of 100
Grade: D+
TGT
Buy52
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
+4.0%
Fair Value
$119.45
Current Price
$122.57
$3.12 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 5.9% — below average capital efficiency
3.8% margin — thin
3.2% margin — thin
Operating margin of 4.5%
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HRL
The strongest argument for HRL centers on Price/Book.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, Debt/Equity.
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 : TGT
The primary concerns for TGT are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 0.99 — expect wider price swings.
TGT is growing revenue faster at 6.7% — 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
TGT scores higher overall (52/100 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.
Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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