Investors seeking opportunities in the packaged foods sector will find The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW) compelling contenders. Both companies operate within the consumer defensive industry, focusing on innovative food products that meet evolving consumer tastes worldwide. Magnum specializes in premium ice cream, while Lamb Weston leads in frozen potato solutions, showcasing diverse innovation strategies. This analysis will help you decide which company holds the most promise for your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between The Magnum Ice Cream Company N.V. and Lamb Weston Holdings, Inc. by providing an overview of these two companies and their main differences.
The Magnum Ice Cream Company N.V. Overview
The Magnum Ice Cream Company N.V., based in Amsterdam, Netherlands, specializes in the ice cream segment of the packaged foods industry. It operates within the consumer defensive sector and employs approximately 18,582 people. The company is relatively new to the public market, having gone public in late 2025, with a market capitalization of about 9.3B USD.
Lamb Weston Holdings, Inc. Overview
Lamb Weston Holdings, Inc., headquartered in Eagle, Idaho, produces and markets value-added frozen potato products worldwide. It serves retail and foodservice customers through multiple segments, including global, foodservice, and retail. Founded in 1950, Lamb Weston is a more established player with around 10,700 employees and a market cap of approximately 5.8B USD.
Key similarities and differences
Both Magnum and Lamb Weston operate in the packaged foods industry within the consumer defensive sector and are listed on the NYSE. However, Magnum focuses exclusively on ice cream, whereas Lamb Weston has a diversified frozen potato product portfolio and additional vegetable and dairy businesses. Magnum’s workforce is larger, and it is a newer public company compared to the more established Lamb Weston.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW) for their most recent fiscal years.
| Metric | The Magnum Ice Cream Company N.V. (MICC) | Lamb Weston Holdings, Inc. (LW) |
|---|---|---|
| Market Cap | 9.3B EUR | 5.8B USD |
| Revenue | 7.95B EUR | 6.45B USD |
| EBITDA | 1.10B EUR | 1.07B USD |
| EBIT | 725M EUR | 665M USD |
| Net Income | 450M EUR | 357M USD |
| EPS | 0.74 EUR | 2.51 USD |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
The Magnum Ice Cream Company N.V.
Over 2022-2024, Magnum Ice Cream showed moderate revenue growth of 5.88% but a net income decline of 11.59%. Gross margin remained favorable at 34.91%, though net margin contracted by 16.5%. In 2024, revenue grew 4.32%, but net margin and EPS fell, indicating margin pressures despite stable EBIT margins.
Lamb Weston Holdings, Inc.
From 2021 to 2025, Lamb Weston’s revenue rose sharply by 75.74% with net income increasing 12.4%. Gross and EBIT margins held favorable levels at 21.68% and 10.31%, respectively. However, 2025 saw a slight revenue dip of 0.25% and sharp declines in net margin (-50.64%) and EPS (-49.8%), reflecting a challenging recent year.
Which one has the stronger fundamentals?
Magnum Ice Cream’s income statement shows steady but slowing growth with margin erosion and unfavorable net income trends, resulting in an overall unfavorable assessment. Lamb Weston displays strong long-term growth and favorable margins but recent year declines offset gains, leading to a neutral overall evaluation. Both face challenges in sustaining profitability.
Financial Ratios Comparison
Below is a comparison of key financial ratios for The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW), based on their most recent fiscal year data.
| Ratios | MICC (2024) | LW (2025) |
|---|---|---|
| ROE | 16.20% | 20.56% |
| ROIC | 16.42% | 7.43% |
| P/E | 19.60 | 22.21 |
| P/B | 3.18 | 4.56 |
| Current Ratio | 0.80 | 1.38 |
| Quick Ratio | 0.35 | 0.68 |
| D/E | 0.068 | 2.39 |
| Debt-to-Assets | 3.41% | 56.21% |
| Interest Coverage | 5.18 | 3.70 |
| Asset Turnover | 1.44 | 0.87 |
| Fixed Asset Turnover | 3.37 | 1.68 |
| Payout Ratio | 2.44% | 57.92% |
| Dividend Yield | 0.12% | 2.61% |
Interpretation of the Ratios
The Magnum Ice Cream Company N.V.
The Magnum Ice Cream Company shows mostly favorable ratios, including a strong ROE of 16.2% and ROIC of 16.42%, alongside a low debt-to-equity ratio of 0.07, indicating prudent leverage. However, liquidity ratios like the current ratio at 0.8 are unfavorable, suggesting potential short-term liquidity concerns. The company does not pay dividends, likely prioritizing reinvestment or growth.
Lamb Weston Holdings, Inc.
Lamb Weston presents a mixed ratio profile with a favorable ROE of 20.56% but neutral ROIC at 7.43% and high leverage, with a debt-to-equity of 2.39 and debt-to-assets at 56.21%, which may increase financial risk. Its current ratio is neutral at 1.38. The company pays dividends with a 2.61% yield, supported by a moderate payout ratio but carries some risk due to elevated debt levels.
Which one has the best ratios?
The Magnum Ice Cream Company exhibits a generally more favorable ratio set, especially in profitability and leverage, despite weaker liquidity. Lamb Weston has strengths in shareholder returns but faces higher financial risk from its leverage and mixed operational efficiency. Overall, Magnum’s ratios appear more balanced and less risky compared to Lamb Weston’s profile.
Strategic Positioning
This section compares the strategic positioning of The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW), focusing on Market position, Key segments, and disruption:
The Magnum Ice Cream Company N.V. (MICC)
- Established market player in ice cream with low beta and stable market cap around 9.3B USD.
- Focused exclusively on ice cream products within consumer defensive sector.
- No explicit data on exposure to technological disruption available.
Lamb Weston Holdings, Inc. (LW)
- Competes in frozen potato products globally, market cap approximately 5.8B USD with moderate beta 0.44.
- Diverse segments: Global, Foodservice, Retail, and Other, with major revenue drivers in frozen potatoes.
- No explicit data on technological disruption exposure provided.
The Magnum Ice Cream Company N.V. vs Lamb Weston Holdings, Inc. Positioning
MICC operates a concentrated business model focusing solely on ice cream, potentially ensuring specialization but limited diversification. LW’s broader segment mix across frozen potatoes and related products offers diversified revenue streams, though with some exposure to market fluctuations in multiple segments.
Which has the best competitive advantage?
MICC shows a favorable economic moat with stable ROIC exceeding WACC by over 10%, indicating strong value creation and stable profitability. LW has a slightly favorable moat with positive value creation but declining ROIC, signaling weakening profitability over time.
Stock Comparison
The stock price movements of The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW) over the past 12 months reveal contrasting bearish trends, with notable differences in volatility and recent trading dynamics.
Trend Analysis
The Magnum Ice Cream Company N.V. (MICC) experienced a moderate bearish trend over the past year with a price decline of -3.97%, stable acceleration, and low volatility indicated by a 0.26 standard deviation. Prices ranged narrowly between 15.24 and 15.88.
Lamb Weston Holdings, Inc. (LW) showed a steep bearish trend with a -59.65% price drop, decelerating downward momentum, and high volatility marked by a 15.2 standard deviation. Its price fluctuated widely from 106.53 to 41.37.
Comparing both, LW delivered the lowest market performance with a significantly sharper decline and greater volatility than MICC, which had a milder and more stable bearish trend.
Target Prices
Analysts provide clear target price consensus for The Magnum Ice Cream Company N.V. and Lamb Weston Holdings, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| The Magnum Ice Cream Company N.V. | 16 | 16 | 16 |
| Lamb Weston Holdings, Inc. | 68 | 46 | 52.67 |
The Magnum Ice Cream Company’s consensus target price of $16 is slightly above its current price of $15.24, indicating modest upside. Lamb Weston’s consensus target of $52.67 suggests significant potential growth from its current $41.43 market price.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW):
Rating Comparison
MICC Rating
- Rated B- with an overall score of 3, indicating a moderate assessment.
- Discounted Cash Flow score is 1, marked as very unfavorable for valuation.
- Return on Equity score is 5, considered very favorable for profitability.
- Return on Assets score is 4, showing favorable asset utilization.
- Debt to Equity score is 1, indicating very unfavorable financial risk.
LW Rating
- Rated B with an overall score of 3, also reflecting a moderate assessment.
- Discounted Cash Flow score is 4, viewed as favorable for valuation.
- Return on Equity score is 5, equally very favorable for profitability.
- Return on Assets score is 4, similarly favorable asset utilization.
- Debt to Equity score is 1, also very unfavorable financial risk.
Which one is the best rated?
Based on the data, LW has a higher rating (B vs. B-) and a notably better discounted cash flow score (4 vs. 1), while both have equal overall, ROE, ROA, and debt to equity scores. LW is therefore better rated overall.
Scores Comparison
The scores comparison between The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW) is as follows:
MICC Scores
- Altman Z-Score: Not available
- Piotroski Score: Not available
LW Scores
- Altman Z-Score: 2.75, classified in the grey zone
- Piotroski Score: 9, considered very strong
Which company has the best scores?
Based on the available data, LW has a clear advantage with a high Piotroski score of 9 and an Altman Z-Score in the grey zone. MICC’s scores are not provided, so no direct comparison can be made.
Grades Comparison
Here is a comparison of the recent grades and ratings for the two companies:
Lamb Weston Holdings, Inc. Grades
The following table summarizes recent grades from recognized financial institutions for Lamb Weston Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2025-12-23 |
| Barclays | Maintain | Overweight | 2025-12-23 |
| B of A Securities | Maintain | Neutral | 2025-12-22 |
| Stifel | Maintain | Hold | 2025-12-22 |
| Deutsche Bank | Maintain | Hold | 2025-12-22 |
| Wells Fargo | Maintain | Overweight | 2025-10-01 |
| B of A Securities | Maintain | Neutral | 2025-10-01 |
| Barclays | Maintain | Overweight | 2025-07-25 |
| Wells Fargo | Maintain | Overweight | 2025-07-24 |
| Wells Fargo | Maintain | Overweight | 2025-07-09 |
Overall, Lamb Weston Holdings, Inc. displays a consistent rating trend with several overweight and neutral grades, and a consensus rating of “Hold.”
For The Magnum Ice Cream Company N.V., no reliable grades from verifiable grading companies are available. Therefore, no formal rating summary can be provided.
Which company has the best grades?
Lamb Weston Holdings, Inc. has received multiple consistent grades ranging from Hold to Overweight, indicating moderate confidence from analysts. The Magnum Ice Cream Company N.V. lacks available grade data, which limits comparative assessment and may increase perceived uncertainty for investors.
Strengths and Weaknesses
Below is a comparison of The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW) based on key investment criteria reflecting their recent financial and operational data.
| Criterion | The Magnum Ice Cream Company N.V. (MICC) | Lamb Weston Holdings, Inc. (LW) |
|---|---|---|
| Diversification | Focused on ice cream; limited product range but strong brand niche | Broad product segmentation including Foodservice, Global, Retail, and Other segments |
| Profitability | Strong ROIC at 16.42%, favorable ROE at 16.2%, stable net margin at 5.66% | Moderate ROIC at 7.43%, high ROE at 20.56%, net margin around 5.54%, but declining profitability trend |
| Innovation | Stable innovation with neutral ROIC trend, maintaining competitive advantage | Innovation impact less clear; declining ROIC suggests challenges in maintaining profitability |
| Global presence | Moderate global presence with efficient asset turnover (1.44) | Significant global footprint with major revenue from Global Segment ($2.93B in 2023) |
| Market Share | Niche market leader in premium ice cream segment | Large market share in frozen food products, especially potatoes |
Key takeaways: MICC offers a stable and favorable investment profile with efficient capital use and a focused niche, while LW presents broader diversification but faces profitability pressures and a declining ROIC trend. Investors should weigh MICC’s stability against LW’s growth potential tempered by operational challenges.
Risk Analysis
Below is a comparison of key risks for The Magnum Ice Cream Company N.V. (MICC) and Lamb Weston Holdings, Inc. (LW) based on the most recent financial data from 2024 and 2025 respectively.
| Metric | The Magnum Ice Cream Company N.V. (MICC) | Lamb Weston Holdings, Inc. (LW) |
|---|---|---|
| Market Risk | Low beta (0), stable price range (14.45-16.89) | Moderate beta (0.44), wider price range (39.79-67.07) |
| Debt level | Very low debt/equity (0.07), debt to assets 3.41% | High debt/equity (2.39), debt to assets 56.21% |
| Regulatory Risk | Moderate, operates in EU market with standard food regulations | Moderate, US-based with exposure to global foodservice regulations |
| Operational Risk | Unfavorable liquidity ratios (current ratio 0.8, quick ratio 0.35) | Neutral to unfavorable liquidity (current ratio 1.38, quick ratio 0.68) |
| Environmental Risk | Standard industry risk, no major reported issues | Standard industry risk, exposure to agricultural supply chain |
| Geopolitical Risk | Moderate, primarily Europe focused | Moderate, global operations with US base |
The most impactful risk for MICC is its unfavorable liquidity position despite very low leverage, which could limit flexibility in a downturn. LW’s key risk lies in its high debt load, increasing financial vulnerability. Both companies face typical regulatory and geopolitical risks inherent to the packaged foods sector, but MICC’s strong return on equity and low market volatility suggest higher stability.
Which Stock to Choose?
The Magnum Ice Cream Company N.V. (MICC) shows stable income with moderate revenue growth and a mixed income statement marked by declining net margin and EPS. Its financial ratios are largely favorable, highlighting strong profitability and low debt levels, supported by a very favorable moat and a B- rating.
Lamb Weston Holdings, Inc. (LW) displays higher overall revenue growth but recent income deterioration with significant negative net margin and EPS trends. Its financial ratios are slightly unfavorable due to high debt and weaker asset efficiency, coupled with a slightly favorable moat and a B rating.
Investors favoring stability and efficient capital use might find MICC more appealing given its favorable financial ratios and moat, while those inclined towards growth investing might see LW’s higher revenue expansion and stronger rating as potential, despite recent income challenges and elevated 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 Magnum Ice Cream Company N.V. and Lamb Weston Holdings, Inc. to enhance your investment decisions:
