Head-To-Head Analysis: Archer Daniels Midland (NYSE:ADM) and Mama’s Creations (NASDAQ:MAMA)

Archer Daniels Midland (NYSE:ADM) and Mama’s Creations (NASDAQ:MAMA) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Archer Daniels Midland	$80.27 billion	0.51	$1.08 billion	$3.65	23.19
Mama’s Creations	$171.71 million	4.16	$5.29 million	$0.17	89.18

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

Analyst Recommendations

This is a summary of current recommendations for Archer Daniels Midland and Mama’s Creations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Archer Daniels Midland	1	5	1	1	2.25
Mama’s Creations	0	1	6	1	3.00

Archer Daniels Midland presently has a consensus price target of $79.67, indicating a potential downside of 5.90%. Mama’s Creations has a consensus price target of $20.00, indicating a potential upside of 31.93%. Given Mama’s Creations’ stronger consensus rating and higher possible upside, analysts clearly believe Mama’s Creations is more favorable than Archer Daniels Midland.

Insider & Institutional Ownership

78.3% of Archer Daniels Midland shares are held by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are held by institutional investors. 0.6% of Archer Daniels Midland shares are held by insiders. Comparatively, 1.0% of Mama’s Creations shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Archer Daniels Midland	2.16%	9.21%	3.95%
Mama’s Creations	3.53%	10.05%	7.12%

Volatility and Risk

Archer Daniels Midland has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Summary

Mama’s Creations beats Archer Daniels Midland on 9 of the 14 factors compared between the two stocks.

About Archer Daniels Midland

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.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.