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CAG vs LW

CAG
Conagra Brands, Inc.
BEARISH
Price
$14.17
Market Cap
$6.78B
Sector
Consumer Defensive
AI Confidence
90%
LW
Lamb Weston Holdings, Inc.
BEARISH
Price
$43.03
Market Cap
$5.94B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
CAG
--
LW
20.2
Forward P/E
CAG
8.34
LW
14.36
P/B Ratio
CAG
0.83
LW
3.27
P/S Ratio
CAG
0.61
LW
0.91
EV/EBITDA
CAG
8.13
LW
8.5

Profitability

Gross Margin
CAG
24.27%
LW
20.66%
Operating Margin
CAG
10.57%
LW
10.93%
Profit Margin
CAG
-0.39%
LW
4.61%
ROE
CAG
-0.51%
LW
17.36%
ROA
CAG
4.2%
LW
6.34%

Growth

Revenue Growth
CAG
-1.9%
LW
2.9%
Earnings Growth
CAG
39.0%
LW
-62.2%

Financial Health

Debt/Equity
CAG
0.9
LW
2.2
Current Ratio
CAG
0.9
LW
1.46
Quick Ratio
CAG
0.25
LW
0.57

Dividends

Dividend Yield
CAG
9.88%
LW
3.53%
Payout Ratio
CAG
79.1%
LW
69.95%

AI Verdict

CAG BEARISH

Conagra Brands (CAG) exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health. While the stock appears cheap on a Price-to-Book (0.83) and Forward P/E (8.34) basis, these metrics are offset by negative profit margins, negative ROE, and a critical liquidity shortage evidenced by a Quick Ratio of 0.25. The technical trend is completely bearish (0/100), and the stock is trading near its 52-week low following a multi-year decline. Despite a high dividend yield, the underlying deterioration in operational efficiency and growth makes the current valuation a potential value trap.

Strengths
Low Price-to-Book ratio (0.83) suggesting asset undervaluation
Low Forward P/E (8.34) relative to broader market
High dividend yield of 9.88% providing immediate income
Risks
Critical liquidity risk with a Quick Ratio of 0.25
Negative Profit Margin (-0.39%) and negative ROE (-0.51%)
Negative revenue growth (-1.90% YoY) indicating shrinking market share or demand
LW BEARISH

Lamb Weston exhibits significant fundamental deterioration, highlighted by a Piotroski F-Score of 4/9 (Stable/Weak) and a severe earnings collapse of -62.20% YoY. The stock is trading at a substantial premium to its Graham Number ($25.10) and Intrinsic Value ($14.91), suggesting a lack of valuation support. While analysts maintain a 'Buy' rating, the technical trend is 0/100 (Bearish) and the company's high Debt/Equity ratio (2.20) combined with a low Quick Ratio (0.57) indicates mounting financial pressure.

Strengths
Strong ROE of 17.36% indicating efficient equity utilization
Consistent history of beating earnings estimates in recent quarters
Operates in the Consumer Defensive sector providing some recessionary hedge
Risks
Severe earnings contraction (-62.20% YoY) indicating operational distress
High leverage with a Debt/Equity ratio of 2.20
Poor liquidity indicated by a Quick Ratio of 0.57

Compare Another Pair

CAG vs LW: Head-to-Head Comparison

This page compares Conagra Brands, Inc. (CAG) and Lamb Weston Holdings, Inc. (LW) 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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