Brown-Forman vs Lamb Weston

Brown-Forman and Lamb Weston: This page compares business models, financial performance, and market context in a neutral, accessible way. It outlines how each company creates value and operates within its industry without making judgments or recommendations. Educational content, not financial advice.

Brown-Forman and Lamb Weston: This page compares business models, financial performance, and market context in a neutral, accessible way. It outlines how each company creates value and operates within...

Comparison Snapshot

Key Financial Metrics

BF.B

Metric

LW

$12.64B

Market Cap

$6.04B

13.19%

Potential Profit

33.94%

Hold

Analyst Rating

Hold

Investment Analysis

Brown-Forman

BF.B

Pros

Brown-Forman has a diverse portfolio with over 40 spirit, RTD cocktail, and wine brands including the well-established Jack Daniel’s family.
The company maintains strong liquidity ratios indicating healthy short-term financial stability with a quick ratio of 1.18 and a current ratio of 3.88.
Brown-Forman demonstrates solid profitability metrics with a normalized return on assets around 12% and return on equity exceeding 26%.

Considerations

The company's price-to-earnings multiple is mid-range compared to industry peers, suggesting limited valuation upside relative to some competitors.
Growth could be constrained by the mature status of its core alcoholic beverage markets and intense competition within the industry.
Operating in over 170 countries exposes Brown-Forman to diverse regulatory environments and currency fluctuation risks that may impact earnings.

Lamb Weston

LW

Pros

Lamb Weston is focused on operational efficiencies and international expansion to counteract rising input cost pressures and evolving consumer trends.
The company’s defensive business model and improving profit estimates support stability in the food sector.
Analyst consensus rates Lamb Weston stock as a buy with upside potential of around 10-20% over the next year based on price targets.

Considerations

Lamb Weston’s revenue and earnings declined recently, with earnings dropping over 50% year-over-year, indicating near-term profitability challenges.
The stock trades at about 16 times 2025 earnings but scores low on several valuation metrics, suggesting it may be undervalued for specific risks.
Past share price declines and volatility raise concerns about market confidence and execution risks amid industry headwinds.

About The Companies

Brown-Forman (BF.B)

Brown‑Forman Corporation (ticker: BF.B) is a US-based producer and marketer of premium spirits, best known for brands such as Jack Daniel’s, Woodford Reserve and Finlandia. The company earns revenue from a mix of mature markets and faster-growing international markets, with a business model that benefits from brand strength, steady pricing power and generally stable consumer demand. Investors should note Brown‑Forman’s focus on premiumisation and international expansion, which can support long-term revenue growth but may be influenced by currency moves, regulatory changes and shifting consumer tastes. The firm has a history of paying dividends, which may appeal to income-focused investors, though yields are not guaranteed. Key risks include competitive pressures, commodity and distribution costs, and macroeconomic slowdown that could dampen premium spirit sales. This summary is for general educational purposes and is not personalised investment advice; consider your own circumstances and consult a qualified adviser before investing.

Lamb Weston (LW)

Lamb Weston Holdings Inc. is a major player in the global food industry, focusing on producing and distributing value-added frozen potato products. An investor might be interested to know that it's a key supplier of frozen fries, sweet potato items, and various appetisers to restaurants and retailers across the globe. The company operates through two primary segments: North America and International, serving a wide range of customers from global fast-food chains to local foodservice distributors. Under its well-known Lamb Weston brand and various private labels, it offers a broad portfolio that includes everything from classic fries to innovative vegetable products. As a significant link in the global food supply chain, its performance can be linked to consumer dining habits and trends. As with any investment, the value can go down as well as up and returns are not guaranteed.

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Comparison Snapshot