Critical Contrast: Archer-Daniels-Midland (NYSE:ADM) versus Ingredion (CPO)

Archer-Daniels-Midland (NYSE: ADM) and Ingredion (NYSE:CPO) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

Archer-Daniels-Midland pays an annual dividend of $1.28 per share and has a dividend yield of 3.1%. Ingredion does not pay a dividend. Archer-Daniels-Midland pays out 53.8% of its earnings in the form of a dividend. Archer-Daniels-Midland has raised its dividend for 41 consecutive years.

Insider & Institutional Ownership

73.7% of Archer-Daniels-Midland shares are owned by institutional investors. 2.7% of Archer-Daniels-Midland shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Archer-Daniels-Midland and Ingredion’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Archer-Daniels-Midland $62.26 billion 0.37 $2.70 billion $2.38 17.34
Ingredion N/A N/A N/A N/A N/A

Archer-Daniels-Midland has higher revenue and earnings than Ingredion.

Profitability

This table compares Archer-Daniels-Midland and Ingredion’s 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%
Ingredion 9.13% 19.82% 9.21%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Archer-Daniels-Midland and Ingredion, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archer-Daniels-Midland 1 5 2 0 2.13
Ingredion 0 0 0 0 N/A

Archer-Daniels-Midland presently has a consensus price target of $43.83, suggesting a potential upside of 6.21%.

Summary

Archer-Daniels-Midland beats Ingredion on 6 of the 10 factors compared between the two stocks.

Archer-Daniels-Midland Company Profile

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.

Ingredion Company Profile

Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It operates through four segments: North America, South America, Asia Pacific, and Europe, Middle East and Africa (EMEA). It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. Its product line includes animal feed products and edible corn oil. Its sweetener products include glucose syrups, high maltose syrup, high fructose corn syrup (HFCS), caramel color, dextrose, polyols, maltodextrins and glucose and syrup solids. Its starch-based products include both food-grade and industrial starches, and biomaterials. It also offers specialty ingredients.

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