Hormel Foods (HRL) Competitors

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

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 3.8%. Kraft Heinz pays an annual dividend of $1.60 per share and has a dividend yield of 6.1%. 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 73.1% 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.

Do analysts recommend HRL or KHC?

Hormel Foods presently has a consensus target price of $32.86, indicating a potential upside of 7.69%. Kraft Heinz has a consensus target price of $30.47, indicating a potential upside of 16.84%. Given Kraft Heinz's higher probable upside, analysts plainly believe Kraft Heinz is more favorable than Hormel Foods.

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)	15 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.83

Does the media prefer HRL or KHC?

In the previous week, Kraft Heinz had 17 more articles in the media than Hormel Foods. MarketBeat recorded 30 mentions for Kraft Heinz and 13 mentions for Hormel Foods. Hormel Foods' average media sentiment score of 1.09 beat Kraft Heinz's score of 0.68 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	8 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Kraft Heinz	18 Very Positive mention(s)	1 Positive mention(s)	7 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive

Is HRL or KHC more profitable?

Kraft Heinz has a net margin of 10.44% compared to Hormel Foods' net margin of 6.27%. 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	10.44%	7.37%	4.06%

Which has stronger valuation and earnings, 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	1.41	$805.04M	$1.36	22.43
Kraft Heinz	$25.85B	1.19	$2.74B	$2.19	11.91

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

41.0% of Hormel Foods shares are owned by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are owned by institutional investors. 0.7% of Hormel Foods shares are owned by insiders. Comparatively, 0.4% of Kraft Heinz shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Which has more risk and volatility, HRL or KHC?

Hormel Foods has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.

Summary

Hormel Foods beats Kraft Heinz on 11 of the 20 factors compared between the two stocks.