In the competitive world of packaged foods, The Kraft Heinz Company (KHC) and Conagra Brands, Inc. (CAG) stand out as major players shaping consumer tastes across North America and beyond. Both companies share a focus on innovation and diverse product portfolios that span grocery staples to snacks and frozen meals. This comparison explores their market strategies and financial health to help you identify which company presents a more compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between The Kraft Heinz Company and Conagra Brands, Inc. by providing an overview of these two companies and their main differences.
The Kraft Heinz Company Overview
The Kraft Heinz Company operates in the packaged foods industry, manufacturing and marketing a broad range of food and beverage products across the US, Canada, the UK, and internationally. Its portfolio includes condiments, dairy, meals, beverages, and snacks. Founded in 1869 and headquartered in Pittsburgh, Pennsylvania, it distributes products through various retail and foodservice channels.
Conagra Brands, Inc. Overview
Conagra Brands, Inc. is a North American consumer packaged goods food company with operations segmented into Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. It offers branded food products such as Birds Eye and Duncan Hines. Founded in 1861 and based in Chicago, Illinois, Conagra focuses on retail and foodservice channels primarily in the US but also internationally.
Key similarities and differences
Both companies operate in the consumer defensive sector within packaged foods, offering a diverse range of branded food products distributed through retail and foodservice channels. However, Kraft Heinz has a larger market capitalization and employee base, with a more global footprint including the UK, while Conagra emphasizes segmented operations with a notable presence in refrigerated and frozen products and a stronger focus on the US market.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for The Kraft Heinz Company and Conagra Brands, Inc. for their most recent fiscal years.
| Metric | The Kraft Heinz Company (2024) | Conagra Brands, Inc. (2025) |
|---|---|---|
| Market Cap | 27.7B | 8.0B |
| Revenue | 25.8B | 11.6B |
| EBITDA | 2.72B | 1.97B |
| EBIT | 1.77B | 1.58B |
| Net Income | 2.74B | 1.15B |
| EPS | 2.27 | 2.41 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
The Kraft Heinz Company
Over the 2020-2024 period, Kraft Heinz’s revenue showed a slight overall decline of -1.29%, while net income grew strongly by 670.79%. Gross margin remained favorable at 34.7%, but EBIT margin was stable at 6.84%. In 2024, revenue dropped by 2.98%, EBIT declined sharply by 61.1%, and net margin slightly contracted, indicating some pressure on profitability despite solid net income growth overall.
Conagra Brands, Inc.
From 2021 to 2025, Conagra’s revenue increased moderately by 3.83%, but net income declined by 11.27%, with net margin falling by 14.54%. Gross margin was favorable at 25.86%, and EBIT margin improved to 13.57%. In 2025, revenue fell 3.64% and gross profit dropped 9.9%, yet EBIT surged 50.55% and net margin grew substantially, reflecting improved operational efficiency despite top-line softness.
Which one has the stronger fundamentals?
Kraft Heinz displays stronger long-term net income and margin growth, supported by a higher gross margin, but recent declines in revenue and EBIT pose concerns. Conversely, Conagra shows favorable EBIT and net margin improvements recently, with steady revenue growth over the period, yet overall net income and margin trends are negative. Each has mixed favorable and unfavorable signals, leading to a nuanced fundamental comparison.
Financial Ratios Comparison
Below is a comparison of key financial ratios for The Kraft Heinz Company (KHC) and Conagra Brands, Inc. (CAG) based on the most recent fiscal year data available.
| Ratios | The Kraft Heinz Company (KHC) 2024 | Conagra Brands, Inc. (CAG) 2025 |
|---|---|---|
| ROE | 5.6% | 12.9% |
| ROIC | 6.6% | 7.4% |
| P/E | 13.5 | 9.3 |
| P/B | 0.75 | 1.20 |
| Current Ratio | 1.06 | 0.71 |
| Quick Ratio | 0.59 | 0.24 |
| D/E (Debt-to-Equity) | 0.40 | 0.93 |
| Debt-to-Assets | 22.5% | 39.7% |
| Interest Coverage | 1.85 | 3.27 |
| Asset Turnover | 0.29 | 0.55 |
| Fixed Asset Turnover | 3.61 | 4.09 |
| Payout ratio | 70.4% | 58.1% |
| Dividend yield | 5.2% | 6.2% |
Interpretation of the Ratios
The Kraft Heinz Company
The Kraft Heinz Company shows a mix of strong and weak financial ratios. It has favorable net margin (10.62%), PE (13.53), and a low price-to-book ratio (0.75), indicating good valuation. However, concerns arise from unfavorable return on equity (5.58%), interest coverage (1.94), and asset turnover (0.29). The company pays dividends with a 5.2% yield, suggesting stable shareholder returns but with caution on coverage and payout sustainability.
Conagra Brands, Inc.
Conagra Brands presents mostly neutral ratios with some strengths and weaknesses. Its PE ratio (9.3) and fixed asset turnover (4.09) are favorable, while liquidity ratios like current (0.71) and quick (0.24) ratios are unfavorable, indicating potential short-term risk. The dividend yield stands at 6.25%, with moderate payout supported by neutral debt levels and interest coverage, reflecting balanced but cautious shareholder returns.
Which one has the best ratios?
Both companies have a slightly favorable overall ratio assessment. Kraft Heinz shows stronger valuation metrics and dividend yield but faces challenges in profitability efficiency and interest coverage. Conagra has better asset turnover and interest coverage but weaker liquidity and more neutral profitability. The choice depends on prioritizing valuation versus operational and liquidity factors.
Strategic Positioning
This section compares the strategic positioning of KHC and CAG, focusing on market position, key segments, and exposure to technological disruption:
The Kraft Heinz Company
- Large market cap of 27.7B with low beta, facing competitive pressure in global packaged foods.
- Diverse product portfolio including condiments, dairy, meals, snacks, beverages, and coffee.
- No explicit data on technological disruption exposure is provided in the input.
Conagra Brands, Inc.
- Smaller market cap of 8B with near-zero beta, competing mainly in North American packaged foods.
- Operates four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.
- No explicit data on technological disruption exposure is provided in the input.
The Kraft Heinz Company vs Conagra Brands, Inc. Positioning
KHC has a diversified product range across multiple food categories, providing broad market exposure. CAG shows a segmented approach focusing on grocery, refrigerated, international, and foodservice channels, concentrating on North America with some international reach. Both face competition but differ in scale and segment focus.
Which has the best competitive advantage?
KHC demonstrates a very favorable moat with growing ROIC above WACC, indicating durable competitive advantage. CAG creates value but has a slightly favorable moat with declining ROIC, suggesting a less stable competitive position.
Stock Comparison
The stock price movements of The Kraft Heinz Company (KHC) and Conagra Brands, Inc. (CAG) over the past 12 months reveal significant declines with accelerating downward trends and varying degrees of trading activity.
Trend Analysis
The Kraft Heinz Company (KHC) experienced a bearish trend over the past year with a price decline of -35.12% and accelerating loss momentum. The stock showed high volatility with a standard deviation of 4.13 and ranged between $23.39 and $38.16.
Conagra Brands, Inc. (CAG) also showed a bearish trend with a steeper price drop of -41.08% over the same period, accompanied by accelerating downward momentum and slightly higher volatility at 4.93 standard deviation. The price fluctuated between $16.68 and $32.74.
Comparing both stocks, KHC delivered a higher market performance than CAG, with a smaller percentage loss over the past year, despite both facing accelerating bearish trends.
Target Prices
Analysts present a clear target price consensus for The Kraft Heinz Company and Conagra Brands, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| The Kraft Heinz Company | 28 | 24 | 26.29 |
| Conagra Brands, Inc. | 22 | 16 | 18.6 |
The Kraft Heinz Company’s target consensus at 26.29 USD is notably above its current price of 23.39 USD, indicating moderate upside potential. Conagra Brands’ consensus target of 18.6 USD also exceeds its present price of 16.68 USD, suggesting cautious optimism among analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for The Kraft Heinz Company and Conagra Brands, Inc.:
Rating Comparison
KHC Rating
- Rating: B-, considered very favorable by analysts.
- Discounted Cash Flow Score: 5, indicating very favorable valuation outlook.
- ROE Score: 1, rated very unfavorable for profitability from equity.
- ROA Score: 1, very unfavorable for asset utilization efficiency.
- Debt To Equity Score: 3, moderate financial risk profile.
- Overall Score: 3, indicating a moderate overall financial standing.
CAG Rating
- Rating: B-, also considered very favorable by analysts.
- Discounted Cash Flow Score: 5, indicating very favorable valuation outlook.
- ROE Score: 1, rated very unfavorable for profitability from equity.
- ROA Score: 1, very unfavorable for asset utilization efficiency.
- Debt To Equity Score: 2, moderate but slightly better financial risk profile.
- Overall Score: 2, indicating a moderate overall financial standing.
Which one is the best rated?
Both companies share the same overall rating of B- and have very favorable discounted cash flow scores. KHC holds a slightly higher overall score and debt-to-equity rating, while CAG’s debt-to-equity score is marginally better. The ratings are largely comparable with minor differences in financial risk metrics.
Scores Comparison
Here is a comparison of the financial health scores for The Kraft Heinz Company and Conagra Brands, Inc.:
KHC Scores
- Altman Z-Score: 0.44, in distress zone, high bankruptcy risk.
- Piotroski Score: 6, indicating average financial strength.
CAG Scores
- Altman Z-Score: 1.48, still in distress zone, but closer to grey zone.
- Piotroski Score: 3, indicating very weak financial strength.
Which company has the best scores?
Based on the provided data, KHC has a lower Altman Z-Score indicating higher bankruptcy risk but a stronger Piotroski Score, while CAG has a slightly higher Altman score yet a weaker Piotroski score. Overall, KHC shows relatively better financial strength in Piotroski terms.
Grades Comparison
The following presents the most recent grades from reputable firms for The Kraft Heinz Company and Conagra Brands, Inc.:
The Kraft Heinz Company Grades
Here are the latest grades assigned by well-known financial institutions to The Kraft Heinz Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2025-12-15 |
| Barclays | Maintain | Equal Weight | 2025-10-31 |
| JP Morgan | Maintain | Neutral | 2025-10-30 |
| UBS | Maintain | Neutral | 2025-10-30 |
| TD Cowen | Maintain | Hold | 2025-10-30 |
| Evercore ISI Group | Maintain | In Line | 2025-10-30 |
| Piper Sandler | Maintain | Neutral | 2025-10-30 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-30 |
| Mizuho | Maintain | Neutral | 2025-10-28 |
| UBS | Maintain | Neutral | 2025-10-08 |
The overall trend for The Kraft Heinz Company shows a consistent “Neutral” to “Hold” consensus, reflecting cautious sentiment without strong directional bias.
Conagra Brands, Inc. Grades
Below are the recent grades published by recognized grading firms for Conagra Brands, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Equal Weight | 2026-01-05 |
| UBS | Maintain | Neutral | 2025-12-23 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-22 |
| Deutsche Bank | Maintain | Hold | 2025-12-22 |
| RBC Capital | Maintain | Sector Perform | 2025-12-22 |
| Evercore ISI Group | Maintain | In Line | 2025-12-22 |
| TD Cowen | Maintain | Hold | 2025-12-22 |
| B of A Securities | Maintain | Underperform | 2025-12-22 |
| JP Morgan | Maintain | Neutral | 2025-12-16 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-12 |
Conagra Brands, Inc. displays a wider range of grades, from “Underperform” to “Sector Perform” and “Hold,” indicating mixed opinions among analysts.
Which company has the best grades?
Both companies hold a consensus rating of “Hold,” but The Kraft Heinz Company’s grades cluster more tightly around “Neutral” and “Hold,” while Conagra Brands shows more divergence including some “Underperform” ratings. This suggests a more uniform analyst outlook on Kraft Heinz, potentially implying steadier market expectations for investors.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for The Kraft Heinz Company (KHC) and Conagra Brands, Inc. (CAG) based on their recent financial and operational data.
| Criterion | The Kraft Heinz Company (KHC) | Conagra Brands, Inc. (CAG) |
|---|---|---|
| Diversification | Highly diversified product portfolio with strong presence in condiments, meals, dairy, meats, and snacks, generating over $11B from taste elevation products alone in 2024. | Diversified across Grocery & Snacks, Refrigerated & Frozen, Foodservice, and International segments, with Grocery & Snacks near $4.9B and Refrigerated & Frozen about $4.7B in 2025. |
| Profitability | Solid net margin at 10.6% and favorable PE of 13.5; ROIC at 6.6% is neutral but above WACC (4.1%), indicating value creation. | Moderate net margin near 9.9%, favorable PE of 9.3; ROIC at 7.4% above WACC (4.3%), but profitability trend is declining. |
| Innovation | Moderate innovation reflected in stable product turnover; fixed asset turnover favorable at 3.6 but asset turnover low at 0.29. | Slightly better fixed asset turnover at 4.1; asset turnover moderate at 0.55, indicating more efficient use of assets. |
| Global presence | Global footprint with consistent revenue streams from multiple product categories worldwide. | International segment nearly $1B, showing expanding but smaller global reach compared to KHC. |
| Market Share | Maintains durable competitive advantage with a very favorable moat and growing ROIC trend. | Slightly favorable moat with declining ROIC, indicating some pressure on competitive advantage. |
Key takeaways: Kraft Heinz shows a durable competitive advantage with a well-diversified product base and improving profitability, while Conagra maintains solid value creation but faces challenges with a declining ROIC and somewhat weaker liquidity ratios. Both offer slightly favorable investment profiles, with Kraft Heinz demonstrating greater stability.
Risk Analysis
Below is a summary table of key risks for The Kraft Heinz Company (KHC) and Conagra Brands, Inc. (CAG) based on their most recent financial data and market context in 2026:
| Metric | The Kraft Heinz Company (KHC) | Conagra Brands, Inc. (CAG) |
|---|---|---|
| Market Risk | Low beta (0.065) suggests low volatility but exposed to consumer demand shifts | Negative beta (-0.014) indicates slight inverse market correlation, but still vulnerable to sector trends |
| Debt Level | Moderate leverage, D/E ratio 0.4 (favorable) with 22.5% debt to assets | Higher leverage, D/E ratio 0.93 (neutral) and 39.7% debt to assets, increasing financial risk |
| Regulatory Risk | Moderate, food safety and labeling regulations impact | Moderate, similar regulatory environment and food safety standards |
| Operational Risk | Some weakness in asset turnover and interest coverage (unfavorable) | More operational efficiency but weaker liquidity ratios |
| Environmental Risk | Standard industry exposure to sustainability pressures | Similar exposure, with growing demand for eco-friendly packaging and practices |
| Geopolitical Risk | Moderate, with international market presence | Moderate, with focus mostly on North America but some international exposure |
KHC’s most impactful risk is its financial distress indicated by a low Altman Z-score of 0.44, signaling high bankruptcy risk despite stable market risk and moderate debt. CAG also shows distress risk (Z-score 1.48) but to a lesser extent, compounded by weaker liquidity and very weak Piotroski score (3). Both companies face operational and regulatory risks typical of the packaged foods sector, but KHC’s lower efficiency and weaker interest coverage make its financial stability more vulnerable. Investors should carefully monitor liquidity and debt management alongside market conditions.
Which Stock to Choose?
The Kraft Heinz Company (KHC) shows a mixed income evolution with a favorable net margin of 10.62% but recent revenue and EBIT declines. Its financial ratios are slightly favorable, supported by a very favorable debt profile and valuation metrics, though profitability ratios like ROE are weak. KHC’s strong economic moat with growing ROIC above WACC indicates durable value creation, while its rating is very favorable with moderate overall scores.
Conagra Brands, Inc. (CAG) demonstrates a generally favorable income statement with improving EBIT and net margin growth despite slight revenue declines. Its financial ratios are slightly favorable but with more neutral and unfavorable liquidity and leverage metrics compared to KHC. CAG creates value with ROIC above WACC but shows a declining trend, and it holds a very favorable rating overall, albeit with some weaknesses in financial scores.
Investors focused on stable value creation and durability might view KHC’s growing ROIC and solid rating as favorable signals, while those prioritizing recent earnings growth and margin improvement may find CAG’s income trends and ratio neutrality more appealing. The choice could depend on whether an investor prefers a company with a durable competitive advantage or one with recent operational momentum.
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 Conagra Brands, Inc. to enhance your investment decisions:
