Hormel Foods (HRL) Competitors

Hormel Foods (NYSE:HRL) and Kraft Heinz (NASDAQ:KHC) are both large-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings, analyst recommendations and media sentiment.

Do analysts recommend HRL or KHC?

Hormel Foods currently has a consensus price target of $32.86, indicating a potential upside of 15.27%. Kraft Heinz has a consensus price target of $30.35, indicating a potential upside of 9.78%. Given Hormel Foods' stronger consensus rating and higher possible upside, equities analysts plainly believe Hormel Foods is more favorable than Kraft Heinz.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hormel Foods	0 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.57
Kraft Heinz	3 Sell rating(s)	16 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.84

Is HRL or KHC a better dividend stock?

Hormel Foods pays an annual dividend of $1.16 per share and has a dividend yield of 4.1%. Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 5.8%. Hormel Foods pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kraft Heinz pays out -35.6% of its earnings in the form of a dividend. Hormel Foods has increased its dividend for 60 consecutive years. Kraft Heinz is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more volatility & risk, HRL or KHC?

Hormel Foods has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Does the media favor HRL or KHC?

In the previous week, Kraft Heinz had 12 more articles in the media than Hormel Foods. MarketBeat recorded 30 mentions for Kraft Heinz and 18 mentions for Hormel Foods. Hormel Foods' average media sentiment score of 1.31 beat Kraft Heinz's score of 0.91 indicating that Hormel Foods is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Hormel Foods	13 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Kraft Heinz	19 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable earnings and valuation, HRL or KHC?

Kraft Heinz has higher revenue and earnings than Hormel Foods. Kraft Heinz is trading at a lower price-to-earnings ratio than Hormel Foods, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hormel Foods	$11.92B	1.31	$805.04M	$1.36	20.96
Kraft Heinz	$25.85B	1.27	$2.74B	-$4.49	-6.16

Is HRL or KHC more profitable?

Hormel Foods has a net margin of 6.27% compared to Kraft Heinz's net margin of -20.83%. Hormel Foods' return on equity of 10.20% beat Kraft Heinz's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Hormel Foods	6.27%	10.20%	6.11%
Kraft Heinz	-20.83%	7.40%	4.01%

Do insiders & institutionals have more ownership in HRL or KHC?

41.0% of Hormel Foods shares are held by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are held by institutional investors. 0.7% of Hormel Foods shares are held by insiders. Comparatively, 0.4% of Kraft Heinz shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Hormel Foods beats Kraft Heinz on 14 of the 20 factors compared between the two stocks.