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LW vs PG

LW
Lamb Weston Holdings, Inc.
BEARISH
Price
$43.03
Market Cap
$5.94B
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
LW
20.2
PG
21.59
Forward P/E
LW
14.36
PG
20.23
P/B Ratio
LW
3.27
PG
6.48
P/S Ratio
LW
0.91
PG
3.99
EV/EBITDA
LW
8.5
PG
14.76

Profitability

Gross Margin
LW
20.66%
PG
51.19%
Operating Margin
LW
10.93%
PG
26.3%
Profit Margin
LW
4.61%
PG
19.3%
ROE
LW
17.36%
PG
31.56%
ROA
LW
6.34%
PG
10.9%

Growth

Revenue Growth
LW
2.9%
PG
1.5%
Earnings Growth
LW
-62.2%
PG
-5.4%

Financial Health

Debt/Equity
LW
2.2
PG
0.69
Current Ratio
LW
1.46
PG
0.72
Quick Ratio
LW
0.57
PG
0.47

Dividends

Dividend Yield
LW
3.53%
PG
2.92%
Payout Ratio
LW
69.95%
PG
61.88%

AI Verdict

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
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

LW vs PG: Head-to-Head Comparison

This page compares Lamb Weston Holdings, Inc. (LW) 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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