No connection

Search Results

HSY vs WMT

HSY
The Hershey Company
NEUTRAL
Price
$179.20
Market Cap
$36.12B
Sector
Consumer Defensive
AI Confidence
72%
WMT
Walmart Inc.
BEARISH
Price
$124.57
Market Cap
$993.12B
Sector
Consumer Defensive
AI Confidence
75%

Valuation

P/E Ratio
HSY
26.83
WMT
45.63
Forward P/E
HSY
21.33
WMT
37.93
P/B Ratio
HSY
7.96
WMT
9.96
P/S Ratio
HSY
3.14
WMT
1.39
EV/EBITDA
HSY
16.7
WMT
23.96

Profitability

Gross Margin
HSY
37.73%
WMT
24.93%
Operating Margin
HSY
13.54%
WMT
4.57%
Profit Margin
HSY
11.84%
WMT
3.07%
ROE
HSY
31.01%
WMT
21.85%
ROA
HSY
9.33%
WMT
6.83%

Growth

Revenue Growth
HSY
6.5%
WMT
5.6%
Earnings Growth
HSY
-38.2%
WMT
-19.0%

Financial Health

Debt/Equity
HSY
1.26
WMT
0.64
Current Ratio
HSY
1.36
WMT
0.79
Quick Ratio
HSY
0.66
WMT
0.2

Dividends

Dividend Yield
HSY
3.06%
WMT
0.8%
Payout Ratio
HSY
81.91%
WMT
34.43%

AI Verdict

HSY NEUTRAL

Hershey (HSY) trades at a premium valuation with solid profitability and a resilient brand, but faces near-term headwinds reflected in declining earnings and insider selling. Despite a strong quarterly earnings surprise trend over the past two years, YoY EPS has contracted sharply (-44.4%), and operating margins have compressed amid cost pressures. The stock is down 10.8% over 3Y and remains 14% below its 52-week high, though recent 6M performance (+13.9%) suggests stabilization. Relative to peers like KMB and CL, HSY exhibits better growth and lower leverage than most, but its P/E of 26.8x exceeds the sector average of 22.5x and forward P/E of 21.3x offers limited upside given earnings volatility.

Strengths
ROE of 31.01% demonstrates efficient use of equity capital, well above the sector average of 120.59% when excluding outliers like CL (293.63%) and KMB (136.88%)
Consistent earnings beat streak: 3 out of last 4 quarters beat estimates with an average surprise of +16.89%, indicating strong operational execution and conservative guidance
Revenue growth of 6.5% YoY outpaces peer average of 5.46%, showing pricing power and demand resilience in a defensive sector
Risks
Earnings growth collapse: YoY EPS down -38.2%, Q/Q down -38.1%, signaling severe margin pressure or one-time charges that could persist
High P/E ratio of 26.83 vs forward P/E of 21.33 implies significant multiple contraction is priced in, leaving little room for error
Payout ratio of 81.91% is elevated for a company with earnings volatility, raising sustainability concerns if profitability does not rebound
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

HSY vs WMT: Head-to-Head Comparison

This page compares The Hershey Company (HSY) 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.

Home
Terminal
AI Chat
Markets
Profile