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HRL vs WMT

HRL
Hormel Foods Corporation
BEARISH
Price
$21.47
Market Cap
$11.81B
Sector
Consumer Defensive
AI Confidence
85%
WMT
Walmart Inc.
BEARISH
Price
$124.57
Market Cap
$993.12B
Sector
Consumer Defensive
AI Confidence
75%

Valuation

P/E Ratio
HRL
24.12
WMT
45.63
Forward P/E
HRL
13.66
WMT
37.93
P/B Ratio
HRL
1.49
WMT
9.96
P/S Ratio
HRL
0.97
WMT
1.39
EV/EBITDA
HRL
9.48
WMT
23.96

Profitability

Gross Margin
HRL
15.61%
WMT
24.93%
Operating Margin
HRL
11.06%
WMT
4.57%
Profit Margin
HRL
4.03%
WMT
3.07%
ROE
HRL
6.12%
WMT
21.85%
ROA
HRL
4.43%
WMT
6.83%

Growth

Revenue Growth
HRL
-2.9%
WMT
5.6%
Earnings Growth
HRL
-5.1%
WMT
-19.0%

Financial Health

Debt/Equity
HRL
0.04
WMT
0.64
Current Ratio
HRL
2.66
WMT
0.79
Quick Ratio
HRL
1.3
WMT
0.2

Dividends

Dividend Yield
HRL
5.45%
WMT
0.8%
Payout Ratio
HRL
130.62%
WMT
34.43%

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
WMT BEARISH

WMT shows bearish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 21.8%
Risks
High valuation with P/E of 45.6
Premium vs Graham Number ($27.71)
Low profit margin of 3.1%

Compare Another Pair

HRL vs WMT: Head-to-Head Comparison

This page compares Hormel Foods Corporation (HRL) and Walmart Inc. (WMT) 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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