In the competitive world of packaged foods, The Kraft Heinz Company and Campbell Soup Company stand out as two iconic players with rich histories and diverse product lines. Both companies innovate within the consumer defensive sector, targeting overlapping markets in the U.S. and beyond. This comparison will explore their financial health, growth prospects, and strategic initiatives to help you decide which company deserves a spot in your investment portfolio. Let’s dive in to find the most compelling choice for your wallet.
Table of contents
Companies Overview
I will begin the comparison between The Kraft Heinz Company and Campbell Soup Company by providing an overview of these two companies and their main differences.
The Kraft Heinz Company Overview
The Kraft Heinz Company manufactures and markets food and beverage products across the United States, Canada, the UK, and internationally. Its portfolio includes condiments, cheese, meals, meats, beverages, snacks, and seasonings. Founded in 1869 and headquartered in Pittsburgh, PA, Kraft Heinz distributes through multiple channels including grocery accounts, convenience stores, and foodservice distributors, maintaining a strong presence in the packaged foods industry.
Campbell Soup Company Overview
Campbell Soup Company produces and sells food and beverage products in the US and internationally through its Meals & Beverages and Snacks segments. Its offerings include soups, broths, sauces, snacks, and beverages like V8 juices. Founded in 1869 and based in Camden, NJ, Campbell Soup markets products via retail chains, club stores, drug stores, and e-commerce platforms, serving a diverse consumer base in the packaged foods sector.
Key similarities and differences
Both Kraft Heinz and Campbell Soup operate in the packaged foods industry with extensive product portfolios and international reach. They distribute through retail, foodservice, and e-commerce channels. Kraft Heinz has a larger workforce and market cap of about 27.7B USD compared to Campbell’s 7.9B USD. While Kraft Heinz focuses heavily on condiments and dairy, Campbell emphasizes soups and snacks, reflecting distinct product segmentations within their business models.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for The Kraft Heinz Company and Campbell Soup Company, based on their most recent fiscal year data.
| Metric | The Kraft Heinz Company (KHC) | Campbell Soup Company (CPB) |
|---|---|---|
| Market Cap | 27.7B | 7.9B |
| Revenue | 25.8B | 10.3B |
| EBITDA | 2.72B | 1.58B |
| EBIT | 1.77B | 1.14B |
| Net Income | 2.74B | 602M |
| EPS | 2.27 | 2.02 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
The Kraft Heinz Company
From 2020 to 2024, Kraft Heinz’s revenue slightly declined by 1.29%, while net income surged by 671%, reflecting improved profitability. Gross margin remained favorable at 34.7%, but EBIT margin stayed neutral near 6.84%. In 2024, revenue fell 2.98%, EBIT dropped 61.1%, and net margin slightly decreased, indicating recent operational challenges despite solid long-term earnings growth.
Campbell Soup Company
Campbell Soup showed revenue growth of 20.97% over 2021–2025 but experienced a 39.92% net income decline, with net margin dropping by 50.33%. Gross margin was favorable at 30.42%, and EBIT margin improved to a favorable 11.13%. The 2025 fiscal year saw a 6.4% revenue increase and 13.42% EBIT growth, though net margin declined marginally, signaling mixed but overall positive momentum.
Which one has the stronger fundamentals?
Kraft Heinz displays stronger long-term net income and margin improvements despite recent revenue and EBIT setbacks, with a balanced margin profile. Campbell Soup benefits from consistent revenue and EBIT growth, maintaining favorable margins but declining net income and margins overall. Kraft Heinz’s fundamentals appear more stable, while Campbell’s indicate growth with profitability pressures.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for The Kraft Heinz Company (KHC) and Campbell Soup Company (CPB) based on their most recent fiscal year data.
| Ratios | The Kraft Heinz Company (KHC) | Campbell Soup Company (CPB) |
|---|---|---|
| ROE | 5.58% | 15.43% |
| ROIC | 6.61% | 7.96% |
| P/E | 13.53 | 15.98 |
| P/B | 0.75 | 2.47 |
| Current Ratio | 1.06 | 0.77 |
| Quick Ratio | 0.59 | 0.28 |
| D/E (Debt-to-Equity) | 0.40 | 1.85 |
| Debt-to-Assets | 22.51% | 48.42% |
| Interest Coverage | 1.85 | 3.92 |
| Asset Turnover | 0.29 | 0.69 |
| Fixed Asset Turnover | 3.61 | 3.71 |
| Payout ratio | 70.37% | 76.25% |
| Dividend yield | 5.20% | 4.77% |
Interpretation of the Ratios
The Kraft Heinz Company
Kraft Heinz displays a mixed ratio profile with strengths in net margin (10.62%) and valuation metrics like PE (13.53) and PB (0.75), indicating some undervaluation. However, concerns arise from weak ROE (5.58%), low quick ratio (0.59), and interest coverage (1.94). The company pays a dividend with a moderate 5.2% yield, reflecting a stable payout but potential risks due to free cash flow constraints.
Campbell Soup Company
Campbell Soup shows solid profitability with a favorable ROE of 15.43% and adequate interest coverage (3.31), though net margin (5.87%) and valuation multiples like PE (15.98) are neutral. Liquidity ratios are weaker, with current and quick ratios below 1. The dividend yield of 4.77% is favorable, supported by reasonable leverage, but the high debt-to-equity ratio (1.85) signals caution.
Which one has the best ratios?
Both companies are rated slightly favorable overall, but Kraft Heinz has more favorable valuation and leverage ratios, while Campbell Soup benefits from stronger profitability and interest coverage. Kraft Heinz’s liquidity is superior, yet Campbell’s higher ROE and manageable dividend yield illustrate a balanced but contrasting financial health picture.
Strategic Positioning
This section compares the strategic positioning of The Kraft Heinz Company and Campbell Soup Company, focusing on market position, key segments, and exposure to technological disruption:
The Kraft Heinz Company
- Large market cap with moderate competitive pressure in packaged foods industry.
- Diverse product mix including condiments, cheese, meals, beverages, and snacks.
- Traditional food products with limited explicit exposure to technological disruption.
Campbell Soup Company
- Smaller market cap with stable competitive presence in packaged foods.
- Concentrated on baked snacks, beverages, and soups segments.
- Focus on retail and foodservice with no stated emphasis on technological disruption.
The Kraft Heinz Company vs Campbell Soup Company Positioning
KHC adopts a diversified product strategy across multiple food categories, offering broad market exposure and revenue streams. CPB focuses on fewer segments, mainly snacks and soups, which may allow deeper specialization but less diversification.
Which has the best competitive advantage?
KHC demonstrates a very favorable moat with growing ROIC and durable competitive advantage. CPB shows a slightly favorable moat but declining ROIC trend, indicating less durable profitability compared to KHC.
Stock Comparison
The past year reveals pronounced bearish trends for both The Kraft Heinz Company and Campbell Soup Company, marked by significant price declines and contrasting acceleration dynamics.
Trend Analysis
The Kraft Heinz Company (KHC) experienced a 35.12% price decrease over the past 12 months, indicating a bearish trend with accelerating downward momentum. The stock ranged from a high of 38.16 to a low of 23.39, with volatility measured by a 4.13 standard deviation.
Campbell Soup Company (CPB) saw a 37.83% decline over the same period, confirming a bearish trend but with decelerating losses. Price fluctuated between 51.89 and 26.39, accompanied by higher volatility at a 6.86 standard deviation.
Comparing both stocks, KHC and CPB delivered similar bearish performances, with CPB showing a slightly larger overall decline. KHC’s more recent trend shows less steep losses relative to CPB’s accelerated recent decline.
Target Prices
Analysts present a cautiously optimistic target consensus for Kraft Heinz and Campbell Soup.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| The Kraft Heinz Company | 28 | 24 | 26.29 |
| Campbell Soup Company | 38 | 26 | 30.88 |
The consensus target prices for both companies exceed their current stock prices, indicating moderate upside potential as per analyst expectations. Kraft Heinz’s target consensus is about 12% above its current price, while Campbell Soup shows a roughly 17% potential gain.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for The Kraft Heinz Company and Campbell Soup Company:
Rating Comparison
KHC Rating
- Rating: B- with a very favorable status overall.
- Discounted Cash Flow Score: 5, rated very favorable, indicating strong valuation projections.
- ROE Score: 1, very unfavorable, showing low efficiency in generating profit from equity.
- ROA Score: 1, very unfavorable, reflecting poor asset utilization.
- Debt To Equity Score: 3, moderate, suggesting balanced financial risk.
- Overall Score: 3, moderate, summarizing average financial standing.
CPB Rating
- Rating: B- with a very favorable status overall.
- Discounted Cash Flow Score: 5, rated very favorable, indicating strong valuation projections.
- ROE Score: 3, moderate, indicating better profitability efficiency than KHC.
- ROA Score: 2, moderate, showing more effective asset use compared to KHC.
- Debt To Equity Score: 1, very unfavorable, indicating higher financial risk.
- Overall Score: 3, moderate, summarizing average financial standing.
Which one is the best rated?
Both companies share the same overall rating of B- and an overall score of 3, indicating moderate financial standing. CPB outperforms KHC in profitability metrics like ROE and ROA but has a less favorable debt-to-equity score, reflecting differing risk profiles.
Scores Comparison
Here is a comparison of the financial health scores for Kraft Heinz and Campbell Soup:
KHC Scores
- Altman Z-Score: 0.44, in the distress zone, indicating high bankruptcy risk.
- Piotroski Score: 6, classified as average financial strength.
CPB Scores
- Altman Z-Score: 1.73, also in the distress zone, indicating elevated bankruptcy risk.
- Piotroski Score: 5, classified as average financial strength.
Which company has the best scores?
Based on the provided data, KHC has a slightly lower Altman Z-Score than CPB, both in distress zones, while KHC’s Piotroski Score is marginally higher. Overall, both companies show signs of financial caution with average Piotroski scores.
Grades Comparison
Here is a comparison of recent grades assigned to The Kraft Heinz Company and Campbell Soup Company by reputable grading firms:
The Kraft Heinz Company Grades
The table below shows recent grades from established financial institutions for Kraft Heinz:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Hold | Neutral | 2025-12-15 |
| Barclays | Hold | Equal Weight | 2025-10-31 |
| JP Morgan | Hold | Neutral | 2025-10-30 |
| UBS | Hold | Neutral | 2025-10-30 |
| TD Cowen | Hold | Hold | 2025-10-30 |
| Evercore ISI Group | Hold | In Line | 2025-10-30 |
| Piper Sandler | Hold | Neutral | 2025-10-30 |
| Wells Fargo | Hold | Equal Weight | 2025-10-30 |
| Mizuho | Hold | Neutral | 2025-10-28 |
| UBS | Hold | Neutral | 2025-10-08 |
The Kraft Heinz Company’s grades consistently reflect a neutral or hold stance, indicating a stable but cautious outlook across multiple evaluations.
Campbell Soup Company Grades
The following table summarizes recent grades from recognized firms for Campbell Soup Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Hold | Neutral | 2025-12-11 |
| RBC Capital | Hold | Sector Perform | 2025-12-10 |
| Wells Fargo | Hold | Equal Weight | 2025-12-10 |
| Stifel | Hold | Hold | 2025-12-10 |
| UBS | Sell | Sell | 2025-12-10 |
| Bernstein | Buy | Outperform | 2025-12-10 |
| Stephens & Co. | Buy | Overweight | 2025-12-08 |
| Morgan Stanley | Hold | Equal Weight | 2025-12-05 |
| UBS | Sell | Sell | 2025-12-04 |
| Wells Fargo | Hold | Equal Weight | 2025-09-25 |
Campbell Soup Company shows a more mixed range of grades, including some sell ratings from UBS and buy or outperform ratings from Bernstein and Stephens & Co., reflecting a more varied analyst sentiment.
Which company has the best grades?
Both companies have a consensus rating of “Hold,” but Campbell Soup Company exhibits broader analyst divergence, including both sell and buy ratings, whereas Kraft Heinz maintains predominantly neutral or hold grades. This variation suggests potentially higher uncertainty or opportunity perception in Campbell Soup’s outlook compared to Kraft Heinz’s more stable assessments.
Strengths and Weaknesses
Below is a comparative analysis of The Kraft Heinz Company (KHC) and Campbell Soup Company (CPB), focusing on key criteria relevant to investors.
| Criterion | The Kraft Heinz Company (KHC) | Campbell Soup Company (CPB) |
|---|---|---|
| Diversification | Highly diversified product portfolio including Ambient meals, Cheese, Coffee, Meats, Snacks, and Beverages with revenues spanning over $11B in Taste Elevation segment. | More concentrated in Baked Snacks, Beverages, and Soups with revenues around $4.4B in Baked Snacks alone. |
| Profitability | Net margin at 10.62%, ROIC 6.61%, slightly favorable overall financial ratios; dividend yield 5.2%. | Lower net margin at 5.87%, ROIC 7.96%, with a higher ROE at 15.43%; dividend yield 4.77%. |
| Innovation | Strong value creation with ROIC above WACC by 2.5% and a rapidly growing ROIC trend (+715%), indicating effective innovation and capital use. | Also creates value with ROIC above WACC by 3.76%, but ROIC trend is declining (-16.7%), suggesting challenges in sustaining innovation momentum. |
| Global presence | Broad global footprint supported by a wide range of product segments and market reach. | More regionally focused with less product variety, potentially limiting global scale. |
| Market Share | Large presence in multiple food categories with significant asset turnover in fixed assets (3.61), but lower overall asset turnover (0.29). | Moderate market share with better asset turnover (0.69), but higher debt-to-equity ratio (1.85) indicating leveraged position. |
Key takeaways: Kraft Heinz shows strong diversification and a durable competitive moat with growing profitability, while Campbell Soup benefits from higher ROE but faces a declining profitability trend and more concentrated product exposure. Investors should weigh Kraft Heinz’s stable growth against Campbell’s higher leverage and innovation challenges.
Risk Analysis
Below is a comparison of key risks for The Kraft Heinz Company (KHC) and Campbell Soup Company (CPB) based on the most recent data from 2025-2026:
| Metric | The Kraft Heinz Company (KHC) | Campbell Soup Company (CPB) |
|---|---|---|
| Market Risk | Low beta 0.065, less volatile | Negative beta -0.043, hedging effect but unusual |
| Debt Level | Moderate debt-to-equity 0.4, debt/assets 22.5% (favorable) | High debt-to-equity 1.85 (unfavorable), debt/assets 48.4% (neutral) |
| Regulatory Risk | Moderate, typical for food sector | Moderate, similar regulatory landscape |
| Operational Risk | Asset turnover low at 0.29, some inefficiencies | Better asset turnover at 0.69, moderate efficiency |
| Environmental Risk | Standard industry risk, no red flags | Standard industry risk, no red flags |
| Geopolitical Risk | Exposure to US, Canada, UK markets | Exposure primarily US, Canada, Latin America |
In synthesis, both companies face moderate operational and regulatory risks typical of the packaged foods sector. KHC’s low market volatility and moderate leverage reduce financial risk, but its low liquidity ratios and Altman Z-Score in the distress zone signal caution. CPB carries higher leverage and debt risks, though it shows better operational efficiency and a slightly better Altman Z-Score, albeit still in distress territory. Investors should weigh the financial stability risks carefully, as these are the most impactful and likely to affect returns.
Which Stock to Choose?
The Kraft Heinz Company (KHC) shows a mixed income evolution with a slight revenue decline but strong net income growth overall. Its financial ratios are slightly favorable, with good valuation metrics and manageable debt. Profitability is moderate, while debt service and asset turnover are weaker, resulting in a very favorable rating and a very favorable moat indicating durable competitive advantage.
Campbell Soup Company (CPB) exhibits favorable income growth recently but overall net income decline. Its financial ratios are slightly favorable with a strong return on equity and solid margins, though debt levels are higher and liquidity ratios weaker. CPB’s rating is also very favorable, but its moat is slightly favorable due to declining profitability over time.
For investors prioritizing stable, durable competitive advantage and value creation, KHC’s very favorable moat and stable rating might appear more attractive. Conversely, those seeking higher recent income growth and stronger equity returns could find CPB’s profile more appealing, despite its declining profitability trend and higher leverage.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of The Kraft Heinz Company and Campbell Soup Company to enhance your investment decisions:
