Financial Contrast: Ingredion (CPO) vs. Archer-Daniels-Midland (ADM)
Ingredion (NYSE: CPO) and Archer-Daniels-Midland (NYSE:ADM) are both non-cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitabiliy.
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|
|Archer-Daniels-Midland||$62.95 billion||0.37||$2.58 billion||$2.38||17.39|
Archer-Daniels-Midland has higher revenue and earnings than Ingredion.
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. Ingredion has raised its dividend for 41 consecutive years.
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|
Institutional & Insider Ownership
72.6% 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for Ingredion and Archer-Daniels-Midland, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Archer-Daniels-Midland has a consensus target price of $44.57, suggesting a potential upside of 7.71%.
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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