Archer Daniels Midland (NYSE: ADM) and Kraft Foods Group (NASDAQ:KRFT) 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 dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
This table compares Archer Daniels Midland and Kraft Foods Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Archer Daniels Midland||2.01%||7.86%||3.49%|
|Kraft Foods Group||9.86%||38.66%||7.47%|
This table compares Archer Daniels Midland and Kraft Foods Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Archer Daniels Midland||$62.35 billion||0.36||$1.28 billion||$2.13||18.87|
|Kraft Foods Group||N/A||N/A||N/A||$1.60||N/A|
Archer Daniels Midland has higher revenue and earnings than Kraft Foods Group. Kraft Foods 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
76.0% of Archer Daniels Midland shares are held by institutional investors. 2.7% of Archer Daniels Midland shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Archer Daniels Midland pays an annual dividend of $1.28 per share and has a dividend yield of 3.2%. Kraft Foods Group does not pay a dividend. Archer Daniels Midland pays out 60.1% of its earnings in the form of a dividend. Kraft Foods Group has increased its dividend for 41 consecutive years.
This is a breakdown of recent ratings and target prices for Archer Daniels Midland and Kraft Foods Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Archer Daniels Midland||1||6||1||0||2.00|
|Kraft Foods Group||0||0||0||0||N/A|
Archer Daniels Midland currently has a consensus price target of $41.57, suggesting a potential upside of 3.44%.
Archer Daniels Midland beats Kraft Foods Group on 6 of the 11 factors compared between the two stocks.
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.
About Kraft Foods Group
Kraft Foods Group, Inc. is a consumer packaged food and beverage company. The Company manufactures and markets food and beverage products, including cheese, meats, refreshment beverages, coffee, packaged dinners, refrigerated meals, snack nuts, dressings, and other grocery products, primarily in the United States and Canada. Its product categories span breakfast, lunch and dinner meal occasions. The Company operates in six segments: Cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts and Canada. Its brand portfolio consists of various food brands in North America, including Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese, and over 25 other brands. The Company operates around 36 manufacturing and processing facilities, 34 in the United States and two in Canada. It sells products to supermarket chains, wholesalers, supercenters, club stores, distributors and convenience stores, among others.
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