Archer Daniels Midland (NYSE:ADM – Get Free Report) and S&W Seed (NASDAQ:SANW – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
Archer Daniels Midland has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, S&W Seed has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.
Insider and Institutional Ownership
78.3% of Archer Daniels Midland shares are owned by institutional investors. Comparatively, 61.7% of S&W Seed shares are owned by institutional investors. 0.7% of Archer Daniels Midland shares are owned by company insiders. Comparatively, 11.4% of S&W Seed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Archer Daniels Midland | 1.33% | 8.43% | 3.55% |
S&W Seed | -85.38% | -50.81% | -17.71% |
Valuation & Earnings
This table compares Archer Daniels Midland and S&W Seed”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 | $85.53 billion | 0.35 | $1.80 billion | $2.27 | 27.13 |
S&W Seed | $54.99 million | 0.02 | -$30.03 million | ($14.24) | -0.03 |
Archer Daniels Midland has higher revenue and earnings than S&W Seed. S&W Seed 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 Recommendations
This is a breakdown of recent ratings and price targets for Archer Daniels Midland and S&W Seed, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Archer Daniels Midland | 1 | 7 | 1 | 0 | 2.00 |
S&W Seed | 0 | 0 | 1 | 0 | 3.00 |
Archer Daniels Midland presently has a consensus price target of $55.50, suggesting a potential downside of 9.87%. S&W Seed has a consensus price target of $25.00, suggesting a potential upside of 6,150.00%. Given S&W Seed’s stronger consensus rating and higher probable upside, analysts plainly believe S&W Seed is more favorable than Archer Daniels Midland.
Summary
Archer Daniels Midland beats S&W Seed on 9 of the 13 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 S&W Seed
S&W Seed Co. engages in the breeding, production, and sale of stevia and alfalfa seeds. The company was founded in 1980 and is headquartered in Longmont, CO.
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