HRL vs. PEP: Hormel Foods vs. PepsiCo Stock Comparison
How do Hormel Foods (HRL) and PepsiCo (PEP) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Hormel Foods (HRL) and PepsiCo (PEP) both fall under the Food, Beverage & Tobacco industry group, but HRL is classified in Food Products while PEP is classified in Beverages.
| Profile Item | HRL | PEP |
|---|---|---|
| Name | Hormel Foods Corporation | PepsiCo, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry Group | Food, Beverage & Tobacco | Food, Beverage & Tobacco |
| GICS Industry | Food Products | Beverages |
| GICS Sub-Industry | Packaged Foods & Meats | Soft Drinks & Non-alcoholic Beverages |
| Market Capitalization | 12.08 billion USD | 192.61 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | March 17, 1980 | June 1, 1972 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | HRL | PEP |
|---|---|---|
| Total Return (1Y) | 6.06% | 4.03% |
| Total Return (3Y, Annualized) | -8.11% | -1.40% |
| Total Return (5Y, Annualized) | -9.33% | 0.55% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | HRL | PEP |
|---|---|---|
| Volatility (1Y, Annualized) | 29.42% | 21.68% |
| Beta (5Y) | 0.25 | 0.30 |
| Max Drawdown (5Y) | -59.13% | -30.32% |
| Avg. Volume (3M) | 5.23M | 8.86M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | HRL | PEP |
|---|---|---|
| Sharpe Ratio (1Y) | 0.06 | -0.01 |
| Sortino Ratio (1Y) | 0.09 | -0.02 |
Profitability
ROE (TTM)
PepsiCo (PEP) at 52.19% clears its industry range for ROE, a sharper capital-efficiency signal than Hormel Foods (HRL) at 4.29%, which is closer to a typical peer reading.
HRL
Food, Beverage & Tobacco industry group
4.29%
- Max
- 32.02%
- Q3
- 16.61%
- Median
- 10.05%
- HRL
- 4.29%
- Q1
- 4.10%
- Min
- -10.50%
PEP
Food, Beverage & Tobacco industry group
52.19%
- PEP
- 52.19%
- Max
- 32.02%
- Q3
- 16.61%
- Median
- 10.05%
- Q1
- 4.10%
- Min
- -10.50%
Net Margin (TTM)
Both Hormel Foods (HRL) at 2.82% and PepsiCo (PEP) at 11.09% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
HRL
Food, Beverage & Tobacco industry group
2.82%
- Max
- 24.83%
- Q3
- 11.22%
- Median
- 5.94%
- HRL
- 2.82%
- Q1
- 2.05%
- Min
- -11.49%
PEP
Food, Beverage & Tobacco industry group
11.09%
- Max
- 24.83%
- Q3
- 11.22%
- PEP
- 11.09%
- Median
- 5.94%
- Q1
- 2.05%
- Min
- -11.49%
Operating Margin (TTM)
Both Hormel Foods (HRL) at 8.62% and PepsiCo (PEP) at 16.88% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
HRL
Food, Beverage & Tobacco industry group
8.62%
- Max
- 34.91%
- Q3
- 17.57%
- Median
- 11.06%
- HRL
- 8.62%
- Q1
- 4.15%
- Min
- -15.06%
PEP
Food, Beverage & Tobacco industry group
16.88%
- Max
- 34.91%
- Q3
- 17.57%
- PEP
- 16.88%
- Median
- 11.06%
- Q1
- 4.15%
- Min
- -15.06%
Profitability Metrics
| Metric | HRL | PEP |
|---|---|---|
| ROE (TTM) | 4.29% | 52.19% |
| ROA (TTM) | 4.63% | 9.02% |
| Net Margin (TTM) | 2.82% | 11.09% |
| Operating Margin (TTM) | 8.62% | 16.88% |
| Gross Margin (TTM) | 15.74% | 54.33% |
Growth
Revenue Growth
Both Hormel Foods (HRL) at 1.56% and PepsiCo (PEP) at 2.25% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Hormel Foods (HRL) at -40.82% and PepsiCo (PEP) at -13.67% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | HRL | PEP |
|---|---|---|
| Revenue Growth (YoY) | 1.56% | 2.25% |
| Revenue Growth (3Y CAGR) | -0.95% | 2.83% |
| EPS Growth (YoY) | -40.82% | -13.67% |
| EPS Growth (3Y CAGR) | -21.81% | -2.23% |
Financial Strength
Current Ratio (MRQ)
Hormel Foods (HRL) at 1.88 keeps current ratio within its industry’s typical mid-range, while PepsiCo (PEP) at 0.94 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PEP.
HRL
Food, Beverage & Tobacco industry group
1.88
- Max
- 4.01
- Q3
- 2.35
- HRL
- 1.88
- Median
- 1.53
- Q1
- 1.02
- Min
- 0.33
PEP
Food, Beverage & Tobacco industry group
0.94
- Max
- 4.01
- Q3
- 2.35
- Median
- 1.53
- Q1
- 1.02
- PEP
- 0.94
- Min
- 0.33
Debt / Equity (MRQ)
Hormel Foods (HRL) at 0.36 is near its industry mid-range for debt-to-equity ratio, while PepsiCo (PEP) at 2.31 sits above its benchmark range, pointing to a heavier debt load relative to equity.
HRL
Food, Beverage & Tobacco industry group
0.36
- Max
- 2.19
- Q3
- 1.11
- Median
- 0.68
- HRL
- 0.36
- Q1
- 0.33
- Min
- 0.00
PEP
Food, Beverage & Tobacco industry group
2.31
- PEP
- 2.31
- Max
- 2.19
- Q3
- 1.11
- Median
- 0.68
- Q1
- 0.33
- Min
- 0.00
Financial Strength Metrics
| Metric | HRL | PEP |
|---|---|---|
| Current Ratio (MRQ) | 1.88 | 0.94 |
| Debt / Equity (MRQ) | 0.36 | 2.31 |
| Net Debt / EBITDA | 1.57 | 2.12 |
Dividends
Dividend Yield (TTM)
Both Hormel Foods (HRL) at 5.17% and PepsiCo (PEP) at 4.07% offer top-quartile dividend income relative to share price within their industries.
HRL
Food, Beverage & Tobacco industry group
5.17%
- Max
- 9.38%
- HRL
- 5.17%
- Q3
- 3.77%
- Median
- 1.76%
- Q1
- 0.00%
- Min
- 0.00%
PEP
Food, Beverage & Tobacco industry group
4.07%
- Max
- 9.38%
- PEP
- 4.07%
- Q3
- 3.77%
- Median
- 1.76%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Hormel Foods (HRL) reports payout ratio above 100% at 188.31%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile PepsiCo (PEP) reports 73.02%, ranking against industry peers normally.
HRL
Food, Beverage & Tobacco industry group
188.31%
- Max
- 199.19%
- HRL
- 188.31%
- Q3
- 81.03%
- Median
- 41.52%
- Q1
- 0.00%
- Min
- 0.00%
PEP
Food, Beverage & Tobacco industry group
73.02%
- Max
- 199.19%
- Q3
- 81.03%
- PEP
- 73.02%
- Median
- 41.52%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | HRL | PEP |
|---|---|---|
| Dividend Yield (TTM) | 5.17% | 4.07% |
| Dividend Payout Ratio (TTM) | 188.31% | 73.02% |
Valuation
P/E Ratio (TTM)
PepsiCo (PEP) at 17.78 is near its industry’s usual P/E ratio, while Hormel Foods (HRL) at 35.40 sits in the richer quartile — HRL needs stronger growth or earnings quality to justify the premium.
HRL
Food, Beverage & Tobacco industry group
35.40
- Max
- 52.52
- HRL
- 35.40
- Q3
- 30.78
- Median
- 18.76
- Q1
- 12.77
- Min
- 4.72
PEP
Food, Beverage & Tobacco industry group
17.78
- Max
- 52.52
- Q3
- 30.78
- Median
- 18.76
- PEP
- 17.78
- Q1
- 12.77
- Min
- 4.72
P/S Ratio (TTM)
On P/S ratio, both Hormel Foods (HRL) at 0.99 and PepsiCo (PEP) at 1.96 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
HRL
Food, Beverage & Tobacco industry group
0.99
- Max
- 4.64
- Q3
- 2.27
- Median
- 1.17
- HRL
- 0.99
- Q1
- 0.52
- Min
- 0.00
PEP
Food, Beverage & Tobacco industry group
1.96
- Max
- 4.64
- Q3
- 2.27
- PEP
- 1.96
- Median
- 1.17
- Q1
- 0.52
- Min
- 0.00
P/B Ratio (MRQ)
Hormel Foods (HRL) at 1.54 sits near its industry’s typical P/B ratio, while PepsiCo (PEP) at 8.65 prices above its benchmark range — PEP looks rich relative to book.
HRL
Food, Beverage & Tobacco industry group
1.54
- Max
- 6.35
- Q3
- 3.07
- Median
- 1.58
- HRL
- 1.54
- Q1
- 0.82
- Min
- 0.00
PEP
Food, Beverage & Tobacco industry group
8.65
- PEP
- 8.65
- Max
- 6.35
- Q3
- 3.07
- Median
- 1.58
- Q1
- 0.82
- Min
- 0.00
Valuation Metrics
| Metric | HRL | PEP |
|---|---|---|
| P/E Ratio (TTM) | 35.40 | 17.78 |
| P/S Ratio (TTM) | 0.99 | 1.96 |
| P/B Ratio (MRQ) | 1.54 | 8.65 |
| Free Cash Flow Yield (TTM) | 5.15% | 4.70% |