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BF-B vs HRL

BF-B
Brown-Forman Corporation
NEUTRAL
Price
$27.57
Market Cap
$12.77B
Sector
Consumer Defensive
AI Confidence
68%
HRL
Hormel Foods Corporation
BEARISH
Price
$21.47
Market Cap
$11.81B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
BF-B
16.31
HRL
24.12
Forward P/E
BF-B
15.94
HRL
13.66
P/B Ratio
BF-B
3.13
HRL
1.49
P/S Ratio
BF-B
3.28
HRL
0.97
EV/EBITDA
BF-B
12.86
HRL
9.48

Profitability

Gross Margin
BF-B
59.11%
HRL
15.61%
Operating Margin
BF-B
29.44%
HRL
11.06%
Profit Margin
BF-B
20.83%
HRL
4.03%
ROE
BF-B
20.67%
HRL
6.12%
ROA
BF-B
8.21%
HRL
4.43%

Growth

Revenue Growth
BF-B
-5.4%
HRL
-2.9%
Earnings Growth
BF-B
-13.9%
HRL
-5.1%

Financial Health

Debt/Equity
BF-B
0.64
HRL
0.04
Current Ratio
BF-B
2.97
HRL
2.66
Quick Ratio
BF-B
0.96
HRL
1.3

Dividends

Dividend Yield
BF-B
3.26%
HRL
5.45%
Payout Ratio
BF-B
52.98%
HRL
130.62%

AI Verdict

BF-B NEUTRAL

The Advanced Deterministic Scorecard shows a Piotroski F-Score of 6/9, indicating stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. Despite solid profitability metrics like a 29.44% operating margin and 20.67% ROE, the company faces declining revenue and earnings, with YoY revenue down 5.40% and earnings down 13.90%. The stock trades above the Graham Number of $18.30 at $27.57, supported by a 3.26% dividend yield and analyst target of $30.26, but weak recent earnings surprises and insider selling temper optimism.

Strengths
Strong profitability with operating margin of 29.44% and ROE of 20.67%, well above sector averages
Healthy balance sheet with a current ratio of 2.97 and moderate debt/equity of 0.64
Piotroski F-Score of 6 indicates stable financial condition
Risks
Revenue and earnings declining YoY by 5.40% and 13.90% respectively, signaling operational headwinds
Recent earnings misses: 0 out of last 4 quarters beat estimates, with an average surprise of -4.36%
Insider selling activity: CEO sold $0.15M in shares, indicating bearish sentiment
HRL BEARISH

HRL exhibits a stark divergence between its balance sheet health and operational performance. While the Piotroski F-Score of 7/9 indicates strong financial health and the Debt/Equity ratio (0.04) is exemplary, the company is struggling with negative YoY revenue (-2.90%) and earnings growth (-5.10%). The current price of $21.47 trades at a premium to the Graham Number ($17.0) and significantly above the growth-based intrinsic value ($6.23). Most critically, the dividend payout ratio of 130.62% is unsustainable, suggesting a high risk of a dividend cut to align with actual earnings.

Strengths
Strong Piotroski F-Score (7/9) indicating robust short-term financial health
Extremely low leverage with a Debt/Equity ratio of 0.04
Excellent liquidity position with a Current Ratio of 2.66
Risks
Unsustainable dividend payout ratio (130.62%) exceeding net earnings
Persistent input cost inflation in pork, beef, and nut markets
Negative year-over-year growth in both revenue and earnings

Compare Another Pair

BF-B vs HRL: Head-to-Head Comparison

This page compares Brown-Forman Corporation (BF-B) and Hormel Foods Corporation (HRL) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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