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HRL vs PG

HRL
Hormel Foods Corporation
BEARISH
Price
$21.47
Market Cap
$11.81B
Sector
Consumer Defensive
AI Confidence
85%
PG
The Procter & Gamble Company
BEARISH
Price
$145.71
Market Cap
$340.49B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
HRL
24.12
PG
21.59
Forward P/E
HRL
13.66
PG
20.23
P/B Ratio
HRL
1.49
PG
6.48
P/S Ratio
HRL
0.97
PG
3.99
EV/EBITDA
HRL
9.48
PG
14.76

Profitability

Gross Margin
HRL
15.61%
PG
51.19%
Operating Margin
HRL
11.06%
PG
26.3%
Profit Margin
HRL
4.03%
PG
19.3%
ROE
HRL
6.12%
PG
31.56%
ROA
HRL
4.43%
PG
10.9%

Growth

Revenue Growth
HRL
-2.9%
PG
1.5%
Earnings Growth
HRL
-5.1%
PG
-5.4%

Financial Health

Debt/Equity
HRL
0.04
PG
0.69
Current Ratio
HRL
2.66
PG
0.72
Quick Ratio
HRL
1.3
PG
0.47

Dividends

Dividend Yield
HRL
5.45%
PG
2.92%
Payout Ratio
HRL
130.62%
PG
61.88%

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
PG BEARISH

PG exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but it is severely overvalued relative to its deterministic baselines. The current price of $145.71 represents a massive premium over the Graham Number ($58.45) and Intrinsic Value ($47.25), while a PEG ratio of 3.92 indicates the valuation is disconnected from its stagnant growth. Negative earnings growth (-5.40% YoY) combined with bearish insider activity and a 0/100 technical trend suggests significant downside risk despite the company's operational efficiency.

Strengths
Exceptional Return on Equity (ROE) of 31.56%
Strong gross margins (51.19%) and operating margins (26.30%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Extreme valuation premium over Graham and Intrinsic value estimates
Negative earnings growth (-5.40% YoY and -6.70% Q/Q)
Weak liquidity ratios with a Current Ratio of 0.72 and Quick Ratio of 0.47

Compare Another Pair

HRL vs PG: Head-to-Head Comparison

This page compares Hormel Foods Corporation (HRL) and The Procter & Gamble Company (PG) 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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