AdvancePierre Foods Holdings (NASDAQ: APFH) and Archer-Daniels-Midland (NYSE:ADM) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Dividends

Archer-Daniels-Midland pays an annual dividend of $1.28 per share and has a dividend yield of 3.0%. AdvancePierre Foods Holdings 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.

Institutional & Insider Ownership

72.9% 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 is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for AdvancePierre Foods Holdings and Archer-Daniels-Midland, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvancePierre Foods Holdings 0 3 0 0 2.00
Archer-Daniels-Midland 1 5 2 0 2.13

AdvancePierre Foods Holdings currently has a consensus target price of $37.67, suggesting a potential downside of 6.42%. Archer-Daniels-Midland has a consensus target price of $42.67, suggesting a potential downside of 1.51%. Given Archer-Daniels-Midland’s stronger consensus rating and higher possible upside, analysts plainly believe Archer-Daniels-Midland is more favorable than AdvancePierre Foods Holdings.

Profitability

This table compares AdvancePierre Foods Holdings and Archer-Daniels-Midland’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AdvancePierre Foods Holdings 7.00% N/A 8.96%
Archer-Daniels-Midland 2.22% 8.40% 3.71%

Earnings and Valuation

This table compares AdvancePierre Foods Holdings and Archer-Daniels-Midland’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AdvancePierre Foods Holdings N/A N/A N/A N/A N/A
Archer-Daniels-Midland $62.26 billion 0.39 $2.70 billion $2.38 18.20

Archer-Daniels-Midland has higher revenue and earnings than AdvancePierre Foods Holdings.

Summary

Archer-Daniels-Midland beats AdvancePierre Foods Holdings on 9 of the 12 factors compared between the two stocks.

About AdvancePierre Foods Holdings

AdvancePierre Foods Holdings, Inc. is a producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks. The Company operates through four segments. The Foodservice segment’s portfolio of products includes breakfast sandwiches, peanut butter and jelly sandwiches, Philly steaks, fully cooked hamburger-patties, country-fried steak, stuffed entrees and chicken tenders. The Retail segment sells both branded and private label ready-to-eat sandwiches, such as grilled chicken sandwiches and stuffed pockets; sandwich components, such as chicken patties, and other entrees and snacks, such as stuffed chicken breasts. The Convenience segment sells customized ready-to-eat sandwiches, such as breakfast sandwiches and burgers; sandwich components, such as chicken patties, and other entrees and snacks, such as cinnamon dough bites. The Industrial segment supplies other food producers, such as packaged food companies under short-term co-manufacturing agreements.

About Archer-Daniels-Midland

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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