ConAgra Foods vs. International Paper: Similar Market Cap, But ConAgra Foods Is A Better Bet

Last Updated: 12/24/2021

ConAgra Foods Has Higher Expected Return Than International Paper

ConAgra Foods is trading at a more expensive P/S valuation vs. International Paper and it makes sense to pay more for ConAgra Foods for a higher expected return

3-Year Return Depends On [1] Revenue Growth [2] P/S

[1] How Much Can Revenue Grow In Next 3 Years

We expect annual revenue growth of 3.9% for CAG and 2.4% for IP

ConAgra Foods Revenue vs International Paper Revenue

[2] Which P/S Scenarios Make Sense

We expect P/S of 1.4 for CAG and 0.8 for IP based on below plausible scenarios

ConAgra Foods P/S vs International Paper P/S

Are Current P/S Ratios Justified

A higher P/S is justified by higher margin, higher revenue growth, better margin expansion, and lower risk

P/S Ratio

Revenue Growth & Operating Margin

Financial & Market Risk

Note On P/S Justification

Past Market Return Comparison Vs Benchmarks

Since 2017, ConAgra Foods and International Paper returned -16% and -14% respectively vs 111% for S&P 500 and 296% for Trefis Multi-Strategy Portfolio

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