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HRL vs KO

HRL
Hormel Foods Corporation
BEARISH
Price
$21.47
Market Cap
$11.81B
Sector
Consumer Defensive
AI Confidence
85%
KO
The Coca-Cola Company
BEARISH
Price
$75.44
Market Cap
$324.71B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
HRL
24.12
KO
24.82
Forward P/E
HRL
13.66
KO
21.85
P/B Ratio
HRL
1.49
KO
10.09
P/S Ratio
HRL
0.97
KO
6.77
EV/EBITDA
HRL
9.48
KO
22.31

Profitability

Gross Margin
HRL
15.61%
KO
61.63%
Operating Margin
HRL
11.06%
KO
24.66%
Profit Margin
HRL
4.03%
KO
27.34%
ROE
HRL
6.12%
KO
43.32%
ROA
HRL
4.43%
KO
9.15%

Growth

Revenue Growth
HRL
-2.9%
KO
2.4%
Earnings Growth
HRL
-5.1%
KO
3.6%

Financial Health

Debt/Equity
HRL
0.04
KO
1.4
Current Ratio
HRL
2.66
KO
1.46
Quick Ratio
HRL
1.3
KO
0.89

Dividends

Dividend Yield
HRL
5.45%
KO
2.73%
Payout Ratio
HRL
130.62%
KO
67.11%

AI Verdict

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
KO BEARISH

KO exhibits a significant disconnect between its current market price ($75.44) and its deterministic value markers, with a Piotroski F-Score of 3/9 indicating weak financial health trends. The stock trades at a massive premium to both its Graham Number ($22.43) and Intrinsic Value ($37.08), while a PEG ratio of 3.95 suggests severe overvaluation relative to its stagnant growth. Despite strong historical earnings beats and high ROE, the combination of bearish insider selling and a 0/100 technical trend signals a lack of immediate catalyst for upside.

Strengths
Exceptional Return on Equity (ROE) of 43.32%
Strong profit margins (27.34%) and gross margins (61.63%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Weak operational health trend as indicated by a Piotroski F-Score of 3/9
Stagnant revenue growth (2.40% YoY) failing to justify the P/E multiple

Compare Another Pair

HRL vs KO: Head-to-Head Comparison

This page compares Hormel Foods Corporation (HRL) and The Coca-Cola Company (KO) 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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