Archer Daniels Midland (NYSE:ADM) & Oatly Group (NASDAQ:OTLY) Critical Review

Oatly Group (NASDAQ:OTLY – Get Free Report) and Archer Daniels Midland (NYSE:ADM – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Risk and Volatility

Oatly Group has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Archer Daniels Midland has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Oatly Group and Archer Daniels Midland, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oatly Group 1 1 3 0 2.40
Archer Daniels Midland 1 5 2 0 2.12

Oatly Group currently has a consensus price target of $14.39, suggesting a potential upside of 27.89%. Archer Daniels Midland has a consensus price target of $79.83, suggesting a potential downside of 3.19%. Given Oatly Group’s stronger consensus rating and higher possible upside, analysts plainly believe Oatly Group is more favorable than Archer Daniels Midland.

Earnings and Valuation

This table compares Oatly Group and Archer Daniels Midland”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oatly Group $862.46 million 0.42 -$152.77 million ($4.13) -2.72
Archer Daniels Midland $80.27 billion 0.50 $1.08 billion $3.65 22.59

Archer Daniels Midland has higher revenue and earnings than Oatly Group. Oatly Group is trading at a lower price-to-earnings ratio than Archer Daniels Midland, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

68.2% of Oatly Group shares are held by institutional investors. Comparatively, 78.3% of Archer Daniels Midland shares are held by institutional investors. 1.7% of Oatly Group shares are held by company insiders. Comparatively, 0.6% of Archer Daniels Midland shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Oatly Group and Archer Daniels Midland’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oatly Group -13.81% -2,479.86% -16.65%
Archer Daniels Midland 2.16% 9.21% 3.95%

Summary

Archer Daniels Midland beats Oatly Group on 9 of the 14 factors compared between the two stocks.

About Oatly Group

(Get Free Report)

Oatly Group AB, an oatmilk company, provides a range of plant-based dairy products made from oats in Europe, the Middle East, Africa, the Americas, and Asia. It offers Barista edition oatmilk, oatgurts, frozen desserts, ice-creams, and yogurts; cooking products, including cooking cream, in regular and organic, Crème Fraiche, whipping cream, vanilla custard, and spreads in a variety of flavors; and ready-to-go drinks. The company was formerly known as Havre Global AB and changed its name to Oatly Group AB in March 2021. Oatly Group AB was founded in 1994 and is headquartered in Malmö, Sweden.

About Archer Daniels Midland

(Get Free Report)

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company originates, merchandises, stores, and transports agricultural raw materials, such as oilseeds and soft seeds. It also engages in the agricultural commodity and feed product import, export, and distribution; and various structured trade finance activities. In addition, the company offers soybean meal and oil; vegetable and salad oils and protein meals; ingredients for the food, feed, energy, and industrial customers; margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, it provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol, and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; corn germ; and citric acids. Additionally, the company provides proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and food products. It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. The company was founded in 1902 and is headquartered in Chicago, Illinois.

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