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HRL vs HSY
Which Stock Would AI Choose? Hormel Foods (HRL) vs. The Hershey Company (HSY) Stock Comparison
Key Takeaways
- HRL and HSY operate in the consumer staples sector but target distinct categories, with Hormel focused on protein and packaged meats while Hershey dominates confectionery.
- Recent market activity shows HSY benefiting from cocoa cost relief and margin expansion in its second-quarter results, while HRL reported steady organic sales growth amid a leadership transition.
- HRL faces ongoing legal pressures from an antitrust matter and has a lower market capitalization compared to HSY, reflecting differences in scale and profitability profiles.
- Both stocks exhibit defensive characteristics typical of staples, with HSY demonstrating stronger recent earnings momentum and HRL emphasizing portfolio simplification and dividend consistency.
- Sector exposure remains similar, yet relative performance highlights trade-offs between volume stability at HRL and pricing power plus innovation at HSY.
- Sentiment for HSY has been supported by raised full-year guidance, while HRL investors monitor the October CEO transition and third-quarter results.
Introduction
Investors and traders often compare HRL and HSY to evaluate defensive opportunities within consumer staples during periods of market volatility. Both companies represent established U.S. food producers with strong brand portfolios, yet they differ in product focus, growth drivers, and capital market profiles. This analysis examines recent performance trends, business fundamentals, and relative positioning to assist those seeking balanced exposure in the packaged foods space. Market participants evaluating stability, dividend reliability, or sector rotation may find the comparison useful for portfolio construction. The discussion draws on observable market data and company disclosures without projecting future outcomes.
HRL Overview and Recent Performance
Hormel Foods Corporation produces a range of branded protein and packaged food products sold through retail, foodservice, and international channels. In recent weeks, the stock has traded in a range influenced by broader staples sector movements and company-specific updates. Key developments include the announcement of John Ghingo as the incoming chief executive officer effective late October, succeeding interim leadership. Second-quarter results highlighted organic net sales growth and adjusted earnings improvement across segments, though reported figures reflected prior divestitures and margin pressures. Sentiment has been tempered by an ongoing antitrust matter and expectations for third-quarter results scheduled for late August. Overall, recent market activity reflects measured investor focus on operational execution amid a lower-beta profile typical of the sector.
HSY Overview and Recent Performance
The Hershey Company is a leading confectionery manufacturer with significant presence in chocolate and related snacks, complemented by salty snacks and international operations. Recent market activity has been shaped by second-quarter earnings that demonstrated sales growth and substantial gross margin expansion driven by lower cocoa costs and pricing actions. The company raised elements of its full-year outlook, citing productivity gains and brand investment plans. Product innovation, including seasonal Halloween offerings, has supported visibility. Stock performance has reflected these updates alongside general consumer staples rotation. Sentiment appears constructive on margin recovery, though volume elasticity remains a noted factor in the confectionery category. The shares maintain a higher market capitalization and valuation multiple relative to some peers in the space.
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Head-to-Head Comparison
HRL and HSY share consumer staples classification but diverge in business models, with Hormel emphasizing diversified protein offerings and Hershey concentrated in confectionery leadership. Growth drivers contrast as HRL pursues organic volume and portfolio simplification while HSY leverages pricing power and commodity cost relief. Recent momentum favors HSY following earnings beats and guidance updates, whereas HRL shows steadier but more modest top-line progress. Risk factors include legal exposure at HRL and volume sensitivity at HSY. Sector exposure remains defensive for both, yet market sentiment reflects differing profitability trajectories and scale advantages for the larger HSY. Trade-offs center on stability versus earnings recovery potential.
Tickeron AI Verdict
Based on observable factors such as recent earnings consistency, margin trajectory, and relative positioning, Tickeron’s AI models currently indicate a probabilistic preference for HSY over HRL. The assessment incorporates trend stability following margin expansion and guidance revisions at Hershey, alongside leadership transition considerations at Hormel. This view remains subject to evolving market data and does not constitute investment advice.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is HRL is a Hold and HSY is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
HRL’s FA Score shows that 2 FA rating(s) are green whileHSY’s FA Score has 2 green FA rating(s).
- HRL’s FA Score: 2 green, 3 red.
- HSY’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
HRL’s TA Score shows that 4 TA indicator(s) are bullish while HSY’s TA Score has 5 bullish TA indicator(s).
- HRL’s TA Score: 4 bullish, 6 bearish.
- HSY’s TA Score: 5 bullish, 4 bearish.
Price Growth
HRL (@Food: Major Diversified) experienced а +1.88% price change this week, while HSY (@Food: Specialty/Candy) price change was -4.27% for the same time period.
The average weekly price growth across all stocks in the @Food: Major Diversified industry was -2.17%. For the same industry, the average monthly price growth was -3.43%, and the average quarterly price growth was -9.22%.
The average weekly price growth across all stocks in the @Food: Specialty/Candy industry was -5.20%. For the same industry, the average monthly price growth was +2.99%, and the average quarterly price growth was -24.72%.
Reported Earning Dates
HRL is expected to report earnings on Dec 02, 2026.
HSY is expected to report earnings on Oct 22, 2026.
Industries' Descriptions
@Food: Major Diversified (-2.17% weekly)Companies in this industry usually make a diverse range of agricultural and/or processed food. Some prominent names in this segment are Mondelez International, which makes chocolates, biscuits, cookies etc. The Kraft Heinz Company specializes in ketchups, sauces, fruit drink pouches and many more. General Mills, Inc. sells flour and cereal. Kellogg is famous for its snacks and breakfast cereal. And so on down the line. As more and more consumers are looking for healthier options in food in recent years, several legacy food companies have responded by revamping brands to include organic and no-added-sugar versions, and/or acquiring healthy food firms, and even streamlining operations.
@Food: Specialty/Candy (-5.20% weekly)A specialty/candy manufacturer specializes in one or more of the following: chocolate, candies, pasta, condiments, seasonings, among other items. Hershey Company, McCormick & Company and J.M. Smucker Company are some of the major firms in this segment. Demand for this industry’s products comes from both institutions/restaurants as well as households.
| HRL | HSY | HRL / HSY | |
| Capitalization | 11.9B | 35.7B | 33% |
| EBITDA | 1B | 2.68B | 37% |
| Gain YTD | -4.915 | -0.328 | 1,498% |
| P/E Ratio | 34.97 | 24.24 | 144% |
| Revenue | 12.2B | 12.2B | 100% |
| Total Cash | N/A | N/A | - |
| Total Debt | 2.86B | 5.92B | 48% |
HRL | HSY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 68 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 11 Undervalued | 26 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 86 | |
SMR RATING 1..100 | 81 | 31 | |
PRICE GROWTH RATING 1..100 | 62 | 59 | |
P/E GROWTH RATING 1..100 | 8 | 46 | |
SEASONALITY SCORE 1..100 | 20 | 65 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
HRL's Valuation (11) in the Food Meat Or Fish Or Dairy industry is in the same range as HSY (26) in the Food Specialty Or Candy industry. This means that HRL’s stock grew similarly to HSY’s over the last 12 months.
HSY's Profit vs Risk Rating (86) in the Food Specialty Or Candy industry is in the same range as HRL (100) in the Food Meat Or Fish Or Dairy industry. This means that HSY’s stock grew similarly to HRL’s over the last 12 months.
HSY's SMR Rating (31) in the Food Specialty Or Candy industry is somewhat better than the same rating for HRL (81) in the Food Meat Or Fish Or Dairy industry. This means that HSY’s stock grew somewhat faster than HRL’s over the last 12 months.
HSY's Price Growth Rating (59) in the Food Specialty Or Candy industry is in the same range as HRL (62) in the Food Meat Or Fish Or Dairy industry. This means that HSY’s stock grew similarly to HRL’s over the last 12 months.
HRL's P/E Growth Rating (8) in the Food Meat Or Fish Or Dairy industry is somewhat better than the same rating for HSY (46) in the Food Specialty Or Candy industry. This means that HRL’s stock grew somewhat faster than HSY’s over the last 12 months.
| HRL | HSY | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 60% | N/A |
| Stochastic ODDS (%) | 2 days ago 49% | 2 days ago 60% |
| Momentum ODDS (%) | 2 days ago 49% | 2 days ago 53% |
| MACD ODDS (%) | 4 days ago 54% | 2 days ago 59% |
| TrendWeek ODDS (%) | 2 days ago 50% | 2 days ago 59% |
| TrendMonth ODDS (%) | 2 days ago 48% | 2 days ago 58% |
| Advances ODDS (%) | 2 days ago 45% | 16 days ago 63% |
| Declines ODDS (%) | 8 days ago 55% | 3 days ago 59% |
| BollingerBands ODDS (%) | 2 days ago 63% | 2 days ago 65% |
| Aroon ODDS (%) | 2 days ago 36% | 2 days ago 55% |
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