ADM vs. BF-B: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADM and BF-B, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ADM’s market capitalization of 26.57 billion USD is substantially larger than BF-B’s 13.49 billion USD, indicating a significant difference in their market valuations.
With betas of 0.66 for ADM and 0.61 for BF-B, both stocks show similar sensitivity to overall market movements.
| Symbol | ADM | BF-B |
|---|---|---|
| Company Name | Archer-Daniels-Midland Company | Brown-Forman Corporation |
| Country | US | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Agricultural Farm Products | Beverages - Wineries & Distilleries |
| CEO | Juan Ricardo Luciano | Lawson E. Whiting |
| Price | 55.31 USD | 28.27 USD |
| Market Cap | 26.57 billion USD | 13.49 billion USD |
| Beta | 0.66 | 0.61 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADM and BF-B by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ADM
6.18%
Agricultural Farm Products Industry
- Max
- 19.53%
- Q3
- 12.40%
- Median
- 7.41%
- Q1
- 5.58%
- Min
- 4.52%
ADM’s Return on Equity of 6.18% is on par with the norm for the Agricultural Farm Products industry, indicating its profitability relative to shareholder equity is typical for the sector.
BF-B
23.19%
Beverages - Wineries & Distilleries Industry
- Max
- 35.39%
- Q3
- 26.24%
- Median
- 12.22%
- Q1
- 0.68%
- Min
- -0.99%
BF-B’s Return on Equity of 23.19% is on par with the norm for the Beverages - Wineries & Distilleries industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ADM
3.42%
Agricultural Farm Products Industry
- Max
- 15.58%
- Q3
- 9.63%
- Median
- 5.28%
- Q1
- 3.56%
- Min
- 1.71%
ADM’s Return on Invested Capital of 3.42% is in the lower quartile for the Agricultural Farm Products industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
BF-B
12.16%
Beverages - Wineries & Distilleries Industry
- Max
- 12.16%
- Q3
- 11.54%
- Median
- 6.24%
- Q1
- 1.03%
- Min
- 0.64%
In the upper quartile for the Beverages - Wineries & Distilleries industry, BF-B’s Return on Invested Capital of 12.16% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ADM
1.63%
Agricultural Farm Products Industry
- Max
- 8.26%
- Q3
- 6.13%
- Median
- 3.22%
- Q1
- 1.67%
- Min
- 1.12%
Falling into the lower quartile for the Agricultural Farm Products industry, ADM’s Net Profit Margin of 1.63% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
BF-B
21.86%
Beverages - Wineries & Distilleries Industry
- Max
- 21.86%
- Q3
- 18.81%
- Median
- 9.72%
- Q1
- 1.03%
- Min
- -0.80%
A Net Profit Margin of 21.86% places BF-B in the upper quartile for the Beverages - Wineries & Distilleries industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ADM
1.92%
Agricultural Farm Products Industry
- Max
- 9.85%
- Q3
- 8.83%
- Median
- 4.47%
- Q1
- 2.84%
- Min
- 0.72%
ADM’s Operating Profit Margin of 1.92% is in the lower quartile for the Agricultural Farm Products industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
BF-B
27.85%
Beverages - Wineries & Distilleries Industry
- Max
- 28.89%
- Q3
- 28.11%
- Median
- 17.76%
- Q1
- 6.58%
- Min
- 3.33%
BF-B’s Operating Profit Margin of 27.85% is around the midpoint for the Beverages - Wineries & Distilleries industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADM | BF-B |
|---|---|---|
| Return on Equity (TTM) | 6.18% | 23.19% |
| Return on Assets (TTM) | 2.56% | 10.75% |
| Return on Invested Capital (TTM) | 3.42% | 12.16% |
| Net Profit Margin (TTM) | 1.63% | 21.86% |
| Operating Profit Margin (TTM) | 1.92% | 27.85% |
| Gross Profit Margin (TTM) | 6.32% | 58.94% |
Financial Strength
Current Ratio
ADM
1.38
Agricultural Farm Products Industry
- Max
- 3.86
- Q3
- 2.58
- Median
- 1.98
- Q1
- 1.51
- Min
- 1.26
ADM’s Current Ratio of 1.38 falls into the lower quartile for the Agricultural Farm Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
BF-B
3.88
Beverages - Wineries & Distilleries Industry
- Max
- 3.88
- Q3
- 3.10
- Median
- 2.22
- Q1
- 1.43
- Min
- 0.92
BF-B’s Current Ratio of 3.88 is in the upper quartile for the Beverages - Wineries & Distilleries industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
ADM
0.56
Agricultural Farm Products Industry
- Max
- 1.00
- Q3
- 0.70
- Median
- 0.53
- Q1
- 0.34
- Min
- 0.07
ADM’s Debt-to-Equity Ratio of 0.56 is typical for the Agricultural Farm Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
BF-B
0.68
Beverages - Wineries & Distilleries Industry
- Max
- 2.11
- Q3
- 1.85
- Median
- 1.22
- Q1
- 0.61
- Min
- 0.37
BF-B’s Debt-to-Equity Ratio of 0.68 is typical for the Beverages - Wineries & Distilleries industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ADM
2.31
Agricultural Farm Products Industry
- Max
- 12.12
- Q3
- 9.52
- Median
- 3.38
- Q1
- 2.68
- Min
- 0.95
In the lower quartile for the Agricultural Farm Products industry, ADM’s Interest Coverage Ratio of 2.31 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
BF-B
9.07
Beverages - Wineries & Distilleries Industry
- Max
- 9.07
- Q3
- 8.13
- Median
- 7.62
- Q1
- 5.77
- Min
- 2.23
BF-B’s Interest Coverage Ratio of 9.07 is in the upper quartile for the Beverages - Wineries & Distilleries industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADM | BF-B |
|---|---|---|
| Current Ratio (TTM) | 1.38 | 3.88 |
| Quick Ratio (TTM) | 0.81 | 1.56 |
| Debt-to-Equity Ratio (TTM) | 0.56 | 0.68 |
| Debt-to-Asset Ratio (TTM) | 0.23 | 0.34 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.24 | 1.90 |
| Interest Coverage Ratio (TTM) | 2.31 | 9.07 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADM and BF-B. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ADM
3.65%
Agricultural Farm Products Industry
- Max
- 7.76%
- Q3
- 5.34%
- Median
- 3.60%
- Q1
- 2.88%
- Min
- 0.00%
ADM’s Dividend Yield of 3.65% is consistent with its peers in the Agricultural Farm Products industry, providing a dividend return that is standard for its sector.
BF-B
3.17%
Beverages - Wineries & Distilleries Industry
- Max
- 4.29%
- Q3
- 3.62%
- Median
- 2.95%
- Q1
- 2.29%
- Min
- 1.61%
BF-B’s Dividend Yield of 3.17% is consistent with its peers in the Beverages - Wineries & Distilleries industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
ADM
71.38%
Agricultural Farm Products Industry
- Max
- 75.60%
- Q3
- 52.87%
- Median
- 34.22%
- Q1
- 33.38%
- Min
- 0.00%
ADM’s Dividend Payout Ratio of 71.38% is in the upper quartile for the Agricultural Farm Products industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
BF-B
48.33%
Beverages - Wineries & Distilleries Industry
- Max
- 98.04%
- Q3
- 89.24%
- Median
- 80.45%
- Q1
- 64.39%
- Min
- 48.33%
BF-B’s Dividend Payout Ratio of 48.33% is in the lower quartile for the Beverages - Wineries & Distilleries industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | ADM | BF-B |
|---|---|---|
| Dividend Yield (TTM) | 3.65% | 3.17% |
| Dividend Payout Ratio (TTM) | 71.38% | 48.33% |
Valuation
Price-to-Earnings Ratio
ADM
19.56
Agricultural Farm Products Industry
- Max
- 33.52
- Q3
- 20.70
- Median
- 16.17
- Q1
- 10.00
- Min
- 4.88
ADM’s P/E Ratio of 19.56 is within the middle range for the Agricultural Farm Products industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
BF-B
15.38
Beverages - Wineries & Distilleries Industry
- Max
- 283.34
- Q3
- 171.27
- Median
- 59.20
- Q1
- 36.80
- Min
- 14.39
In the lower quartile for the Beverages - Wineries & Distilleries industry, BF-B’s P/E Ratio of 15.38 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
ADM
2.10
Agricultural Farm Products Industry
- Max
- 1.93
- Q3
- 1.81
- Median
- 1.54
- Q1
- 1.32
- Min
- 0.67
The Forward PEG Ratio is often not a primary valuation metric in the Agricultural Farm Products industry.
BF-B
2.10
Beverages - Wineries & Distilleries Industry
- Max
- 43.98
- Q3
- 24.22
- Median
- 4.45
- Q1
- 3.21
- Min
- 1.97
In the lower quartile for the Beverages - Wineries & Distilleries industry, BF-B’s Forward PEG Ratio of 2.10 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
Price-to-Sales Ratio
ADM
0.32
Agricultural Farm Products Industry
- Max
- 2.89
- Q3
- 1.43
- Median
- 0.36
- Q1
- 0.25
- Min
- 0.01
ADM’s P/S Ratio of 0.32 aligns with the market consensus for the Agricultural Farm Products industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
BF-B
3.39
Beverages - Wineries & Distilleries Industry
- Max
- 3.18
- Q3
- 2.89
- Median
- 2.41
- Q1
- 1.76
- Min
- 0.97
With a P/S Ratio of 3.39, BF-B trades at a valuation that eclipses even the highest in the Beverages - Wineries & Distilleries industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
ADM
1.21
Agricultural Farm Products Industry
- Max
- 3.19
- Q3
- 1.88
- Median
- 1.10
- Q1
- 0.99
- Min
- 0.77
ADM’s P/B Ratio of 1.21 is within the conventional range for the Agricultural Farm Products industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
BF-B
3.35
Beverages - Wineries & Distilleries Industry
- Max
- 66.00
- Q3
- 27.93
- Median
- 3.67
- Q1
- 2.54
- Min
- 0.77
BF-B’s P/B Ratio of 3.35 is within the conventional range for the Beverages - Wineries & Distilleries industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ADM | BF-B |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.56 | 15.38 |
| Forward PEG Ratio (TTM) | 2.10 | 2.10 |
| Price-to-Sales Ratio (P/S, TTM) | 0.32 | 3.39 |
| Price-to-Book Ratio (P/B, TTM) | 1.21 | 3.35 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 118.63 | 31.29 |
| EV-to-EBITDA (TTM) | 10.68 | 13.11 |
| EV-to-Sales (TTM) | 0.45 | 3.97 |