Head-To-Head Analysis: Ingredion (INGR) & Archer-Daniels-Midland (NYSE:ADM)
Ingredion (NYSE: INGR) and Archer-Daniels-Midland (NYSE:ADM) are both mid-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitabiliy, risk, valuation and earnings.
Earnings & Valuation
This table compares Ingredion and Archer-Daniels-Midland’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ingredion||$5.80 billion||1.51||$1.04 billion||$6.65||18.40|
|Archer-Daniels-Midland||$62.26 billion||0.38||$2.70 billion||$2.38||17.83|
Archer-Daniels-Midland has higher revenue and earnings than Ingredion. Archer-Daniels-Midland is trading at a lower price-to-earnings ratio than Ingredion, indicating that it is currently the more affordable of the two stocks.
Ingredion pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Archer-Daniels-Midland pays an annual dividend of $1.28 per share and has a dividend yield of 3.0%. Ingredion pays out 30.1% of its earnings in the form of a dividend. Archer-Daniels-Midland pays out 53.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ingredion has increased its dividend for 41 consecutive years and Archer-Daniels-Midland has increased its dividend for 4 consecutive years.
Institutional and Insider Ownership
84.1% of Ingredion shares are held by institutional investors. Comparatively, 73.2% of Archer-Daniels-Midland shares are held by institutional investors. 1.9% of Ingredion shares are held by company insiders. Comparatively, 2.7% of Archer-Daniels-Midland shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Ingredion has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Archer-Daniels-Midland has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
This table compares Ingredion and Archer-Daniels-Midland’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Ingredion and Archer-Daniels-Midland, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ingredion presently has a consensus price target of $141.67, indicating a potential upside of 15.77%. Archer-Daniels-Midland has a consensus price target of $43.83, indicating a potential upside of 3.28%. Given Ingredion’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ingredion is more favorable than Archer-Daniels-Midland.
Ingredion beats Archer-Daniels-Midland on 10 of the 16 factors compared between the two stocks.
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.
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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