Archer-Daniels-Midland (NYSE: ADM) is one of 50 public companies in the “Food Processing” industry, but how does it compare to its competitors? We will compare Archer-Daniels-Midland to related companies based on the strength of its risk, institutional ownership, valuation, earnings, dividends, analyst recommendations and profitability.

Dividends

Archer-Daniels-Midland pays an annual dividend of $1.28 per share and has a dividend yield of 2.9%. Archer-Daniels-Midland pays out 53.8% of its earnings in the form of a dividend. As a group, “Food Processing” companies pay a dividend yield of 2.4% and pay out 58.4% of their earnings in the form of a dividend. Archer-Daniels-Midland has raised its dividend for 41 consecutive years. Archer-Daniels-Midland is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Archer-Daniels-Midland has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Archer-Daniels-Midland’s competitors have a beta of 0.71, indicating that their average stock price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares Archer-Daniels-Midland and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Archer-Daniels-Midland $62.26 billion $2.70 billion 18.53
Archer-Daniels-Midland Competitors $8.38 billion $1.04 billion 22.63

Archer-Daniels-Midland has higher revenue and earnings than its competitors. Archer-Daniels-Midland is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Archer-Daniels-Midland and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archer-Daniels-Midland 2.22% 8.40% 3.71%
Archer-Daniels-Midland Competitors 4.09% 11.51% 4.84%

Insider and Institutional Ownership

72.9% of Archer-Daniels-Midland shares are held by institutional investors. Comparatively, 63.3% of shares of all “Food Processing” companies are held by institutional investors. 2.7% of Archer-Daniels-Midland shares are held by company insiders. Comparatively, 12.2% of shares of all “Food Processing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Archer-Daniels-Midland and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archer-Daniels-Midland 1 5 2 0 2.13
Archer-Daniels-Midland Competitors 358 1657 1893 61 2.42

Archer-Daniels-Midland presently has a consensus target price of $42.67, indicating a potential downside of 3.23%. As a group, “Food Processing” companies have a potential downside of 0.69%. Given Archer-Daniels-Midland’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Archer-Daniels-Midland has less favorable growth aspects than its competitors.

Summary

Archer-Daniels-Midland competitors beat Archer-Daniels-Midland on 9 of the 15 factors compared.

About Archer-Daniels-Midland

Archer-Daniels-Midland Company is a processor of oilseeds, corn, wheat, cocoa and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients. Its segments include Agricultural Services, which utilizes its United States grain elevator, global transportation network and port operations to buy, store, clean and transport agricultural commodities, such as oilseeds, wheat, milo, oats, rice and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry; Corn Processing, which is engaged in corn wet milling and dry milling activities; Oilseeds Processing, which includes global activities related to the origination, merchandising, crushing and further processing of oilseeds; Wild Flavors and Specialty Ingredients products, which include flavors, sweeteners and health ingredients; Other, and Corporate.

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