WallStSmart

Lamb Weston Holdings Inc (LW)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 1508% more annual revenue ($104.78B vs $6.52B). LW leads profitability with a 4.6% profit margin vs 3.5%. LW appears more attractively valued with a PEG of 0.97. LW earns a higher WallStSmart Score of 55/100 (C).

LW

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 8.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.98

TGT

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 5.5Value: 7.3Quality: 5.3
Piotroski: 4/9Altman Z: 2.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LWUndervalued (+45.9%)

Margin of Safety

+45.9%

Fair Value

$92.92

Current Price

$43.03

$49.89 discount

UndervaluedFair: $92.92Overvalued
TGTUndervalued (+33.2%)

Margin of Safety

+33.2%

Fair Value

$171.60

Current Price

$129.75

$41.85 discount

UndervaluedFair: $171.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LW1 strengths · Avg: 8.0/10
PEG RatioValuation
0.978/10

Growing faster than its price suggests

TGT4 strengths · Avg: 8.5/10
Market CapQuality
$58.08B9/10

Large-cap with strong market position

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

Areas to Watch

LW4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TGT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Revenue GrowthGrowth
-1.5%2/10

Revenue declined 1.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : LW

The strongest argument for LW centers on PEG Ratio. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bull Case : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.

Bear Case : LW

The primary concerns for LW are Revenue Growth, Altman Z-Score, Profit Margin. Debt-to-equity of 2.25 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.

Bear Case : TGT

The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

TGT carries more volatility with a beta of 1.03 — expect wider price swings.

LW is growing revenue faster at 2.9% — sustainability is the question.

TGT generates stronger free cash flow (2.3B), providing more financial flexibility.

Monitor PACKAGED FOODS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LW scores higher overall (55/100 vs 48/100). TGT offers better value entry with a 33.2% 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.

Lamb Weston Holdings Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.

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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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