Kraft Foods Group (KRFT) and Archer Daniels Midland (ADM) Head to Head Comparison

Kraft Foods Group (NASDAQ: KRFT) and Archer Daniels Midland (NYSE:ADM) are both food processing – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Insider & Institutional Ownership

76.0% 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 will outperform the market over the long term.

Dividends

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. Archer Daniels Midland has raised its dividend for 41 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Kraft Foods Group 9.86% 38.66% 7.47%
Archer Daniels Midland 2.01% 7.86% 3.49%

Valuation & Earnings

This table compares Kraft Foods 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
Kraft Foods Group N/A N/A N/A $1.60 N/A
Archer Daniels Midland $62.35 billion 0.36 $1.28 billion $2.13 18.90

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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Kraft Foods Group and Archer Daniels Midland, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kraft Foods Group 0 0 0 0 N/A
Archer Daniels Midland 1 6 1 0 2.00

Archer Daniels Midland has a consensus target price of $41.57, indicating a potential upside of 3.26%.

Summary

Archer Daniels Midland beats Kraft Foods Group on 7 of the 11 factors compared between the two stocks.

Kraft Foods Group Company Profile

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.

Archer Daniels Midland Company Profile

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.

Receive News & Ratings for Kraft Foods Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kraft Foods Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply