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KHC vs. LW: A Head-to-Head Stock Comparison

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Here’s a clear look at KHC and LW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolKHCLW
Company NameThe Kraft Heinz CompanyLamb Weston Holdings, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryFood ProductsFood Products
Market Capitalization33.01 billion USD7.90 billion USD
ExchangeNasdaqGSNYSE
Listing DateJuly 6, 2015November 10, 2016
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of KHC and LW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

KHC vs. LW: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolKHCLW
5-Day Price Return1.42%3.66%
13-Week Price Return3.95%6.52%
26-Week Price Return-10.41%1.54%
52-Week Price Return-22.38%-8.97%
Month-to-Date Return1.57%-0.72%
Year-to-Date Return-9.18%-15.22%
10-Day Avg. Volume10.11M1.19M
3-Month Avg. Volume13.46M1.95M
3-Month Volatility23.13%44.18%
Beta0.150.50

Profitability

Return on Equity (TTM)

KHC

-11.20%

Food Products Industry

Max
27.15%
Q3
15.66%
Median
10.47%
Q1
7.82%
Min
-2.46%

KHC has a negative Return on Equity of -11.20%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

LW

20.89%

Food Products Industry

Max
27.15%
Q3
15.66%
Median
10.47%
Q1
7.82%
Min
-2.46%

In the upper quartile for the Food Products industry, LW’s Return on Equity of 20.89% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

KHC vs. LW: A comparison of their Return on Equity (TTM) against the Food Products industry benchmark.

Net Profit Margin (TTM)

KHC

-20.83%

Food Products Industry

Max
18.44%
Q3
9.92%
Median
6.38%
Q1
4.13%
Min
-0.92%

KHC has a negative Net Profit Margin of -20.83%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

LW

5.54%

Food Products Industry

Max
18.44%
Q3
9.92%
Median
6.38%
Q1
4.13%
Min
-0.92%

LW’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Food Products industry. This indicates its ability to convert revenue into profit is typical for the sector.

KHC vs. LW: A comparison of their Net Profit Margin (TTM) against the Food Products industry benchmark.

Operating Profit Margin (TTM)

KHC

-27.34%

Food Products Industry

Max
24.83%
Q3
14.27%
Median
9.73%
Q1
6.26%
Min
-0.10%

KHC has a negative Operating Profit Margin of -27.34%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

LW

10.31%

Food Products Industry

Max
24.83%
Q3
14.27%
Median
9.73%
Q1
6.26%
Min
-0.10%

LW’s Operating Profit Margin of 10.31% is around the midpoint for the Food Products industry, indicating that its efficiency in managing core business operations is typical for the sector.

KHC vs. LW: A comparison of their Operating Profit Margin (TTM) against the Food Products industry benchmark.

Profitability at a Glance

SymbolKHCLW
Return on Equity (TTM)-11.20%20.89%
Return on Assets (TTM)-6.05%4.80%
Net Profit Margin (TTM)-20.83%5.54%
Operating Profit Margin (TTM)-27.34%10.31%
Gross Profit Margin (TTM)34.31%22.85%

Financial Strength

Current Ratio (MRQ)

KHC

1.07

Food Products Industry

Max
3.80
Q3
2.40
Median
1.61
Q1
1.28
Min
0.55

KHC’s Current Ratio of 1.07 falls into the lower quartile for the Food Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

LW

1.38

Food Products Industry

Max
3.80
Q3
2.40
Median
1.61
Q1
1.28
Min
0.55

LW’s Current Ratio of 1.38 aligns with the median group of the Food Products industry, indicating that its short-term liquidity is in line with its sector peers.

KHC vs. LW: A comparison of their Current Ratio (MRQ) against the Food Products industry benchmark.

Debt-to-Equity Ratio (MRQ)

KHC

0.51

Food Products Industry

Max
1.87
Q3
0.90
Median
0.48
Q1
0.24
Min
0.00

KHC’s Debt-to-Equity Ratio of 0.51 is typical for the Food Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LW

2.38

Food Products Industry

Max
1.87
Q3
0.90
Median
0.48
Q1
0.24
Min
0.00

With a Debt-to-Equity Ratio of 2.38, LW operates with exceptionally high leverage compared to the Food Products industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

KHC vs. LW: A comparison of their Debt-to-Equity Ratio (MRQ) against the Food Products industry benchmark.

Interest Coverage Ratio (TTM)

KHC

1.99

Food Products Industry

Max
70.39
Q3
32.08
Median
9.51
Q1
4.55
Min
-1.69

In the lower quartile for the Food Products industry, KHC’s Interest Coverage Ratio of 1.99 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

LW

3.62

Food Products Industry

Max
70.39
Q3
32.08
Median
9.51
Q1
4.55
Min
-1.69

In the lower quartile for the Food Products industry, LW’s Interest Coverage Ratio of 3.62 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

KHC vs. LW: A comparison of their Interest Coverage Ratio (TTM) against the Food Products industry benchmark.

Financial Strength at a Glance

SymbolKHCLW
Current Ratio (MRQ)1.071.38
Quick Ratio (MRQ)0.630.58
Debt-to-Equity Ratio (MRQ)0.512.38
Interest Coverage Ratio (TTM)1.993.62

Growth

Revenue Growth

KHC vs. LW: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

KHC vs. LW: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

KHC

5.88%

Food Products Industry

Max
7.43%
Q3
4.12%
Median
2.67%
Q1
1.57%
Min
0.00%

With a Dividend Yield of 5.88%, KHC offers a more attractive income stream than most of its peers in the Food Products industry, signaling a strong commitment to shareholder returns.

LW

2.70%

Food Products Industry

Max
7.43%
Q3
4.12%
Median
2.67%
Q1
1.57%
Min
0.00%

LW’s Dividend Yield of 2.70% is consistent with its peers in the Food Products industry, providing a dividend return that is standard for its sector.

KHC vs. LW: A comparison of their Dividend Yield (TTM) against the Food Products industry benchmark.

Dividend Payout Ratio (TTM)

KHC

48.86%

Food Products Industry

Max
202.50%
Q3
109.53%
Median
67.28%
Q1
39.33%
Min
0.00%

KHC’s Dividend Payout Ratio of 48.86% is within the typical range for the Food Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LW

39.49%

Food Products Industry

Max
202.50%
Q3
109.53%
Median
67.28%
Q1
39.33%
Min
0.00%

LW’s Dividend Payout Ratio of 39.49% is within the typical range for the Food Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

KHC vs. LW: A comparison of their Dividend Payout Ratio (TTM) against the Food Products industry benchmark.

Dividend at a Glance

SymbolKHCLW
Dividend Yield (TTM)5.88%2.70%
Dividend Payout Ratio (TTM)48.86%39.49%

Valuation

Price-to-Earnings Ratio (TTM)

KHC

--

Food Products Industry

Max
35.81
Q3
22.88
Median
17.13
Q1
13.91
Min
2.77

P/E Ratio data for KHC is currently unavailable.

LW

21.48

Food Products Industry

Max
35.81
Q3
22.88
Median
17.13
Q1
13.91
Min
2.77

LW’s P/E Ratio of 21.48 is within the middle range for the Food Products industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

KHC vs. LW: A comparison of their Price-to-Earnings Ratio (TTM) against the Food Products industry benchmark.

Price-to-Sales Ratio (TTM)

KHC

1.28

Food Products Industry

Max
3.63
Q3
1.86
Median
1.14
Q1
0.68
Min
0.12

KHC’s P/S Ratio of 1.28 aligns with the market consensus for the Food Products industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

LW

1.19

Food Products Industry

Max
3.63
Q3
1.86
Median
1.14
Q1
0.68
Min
0.12

LW’s P/S Ratio of 1.19 aligns with the market consensus for the Food Products industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

KHC vs. LW: A comparison of their Price-to-Sales Ratio (TTM) against the Food Products industry benchmark.

Price-to-Book Ratio (MRQ)

KHC

0.74

Food Products Industry

Max
5.01
Q3
2.76
Median
1.98
Q1
1.26
Min
0.52

KHC’s P/B Ratio of 0.74 is in the lower quartile for the Food Products industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

LW

4.11

Food Products Industry

Max
5.01
Q3
2.76
Median
1.98
Q1
1.26
Min
0.52

LW’s P/B Ratio of 4.11 is in the upper tier for the Food Products industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

KHC vs. LW: A comparison of their Price-to-Book Ratio (MRQ) against the Food Products industry benchmark.

Valuation at a Glance

SymbolKHCLW
Price-to-Earnings Ratio (TTM)--21.48
Price-to-Sales Ratio (TTM)1.281.19
Price-to-Book Ratio (MRQ)0.744.11
Price-to-Free Cash Flow Ratio (TTM)9.3126.03