ADM vs. BTI: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADM and BTI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BTI’s market capitalization of 105.92 billion USD is significantly greater than ADM’s 26.57 billion USD, highlighting its more substantial market valuation.
ADM’s beta of 0.66 points to significantly higher volatility compared to BTI (beta: 0.15), suggesting ADM has greater potential for both gains and losses relative to market movements.
BTI is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ADM, on the other hand, is a domestic entity.
| Symbol | ADM | BTI |
|---|---|---|
| Company Name | Archer-Daniels-Midland Company | British American Tobacco p.l.c. |
| Country | US | GB |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Agricultural Farm Products | Tobacco |
| CEO | Juan Ricardo Luciano | Tadeu Luiz Marroco |
| Price | 55.31 USD | 48.38 USD |
| Market Cap | 26.57 billion USD | 105.92 billion USD |
| Beta | 0.66 | 0.15 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | April 14, 1980 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ADM and BTI 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.
BTI
5.87%
Tobacco Industry
- Max
- 22.42%
- Q3
- 6.25%
- Median
- 4.04%
- Q1
- -111.21%
- Min
- -150.20%
BTI’s Return on Equity of 5.87% is on par with the norm for the Tobacco 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.
BTI
3.21%
Tobacco Industry
- Max
- 30.25%
- Q3
- 17.79%
- Median
- 6.37%
- Q1
- 1.66%
- Min
- 0.12%
BTI’s Return on Invested Capital of 3.21% is in line with the norm for the Tobacco industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
BTI
11.78%
Tobacco Industry
- Max
- 23.93%
- Q3
- 21.88%
- Median
- 11.78%
- Q1
- 6.14%
- Min
- 3.22%
BTI’s Net Profit Margin of 11.78% is aligned with the median group of its peers in the Tobacco industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
BTI
14.55%
Tobacco Industry
- Max
- 51.15%
- Q3
- 27.45%
- Median
- 14.55%
- Q1
- 4.39%
- Min
- 0.82%
BTI’s Operating Profit Margin of 14.55% is around the midpoint for the Tobacco industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADM | BTI |
|---|---|---|
| Return on Equity (TTM) | 6.18% | 5.87% |
| Return on Assets (TTM) | 2.56% | 2.56% |
| Return on Invested Capital (TTM) | 3.42% | 3.21% |
| Net Profit Margin (TTM) | 1.63% | 11.78% |
| Operating Profit Margin (TTM) | 1.92% | 14.55% |
| Gross Profit Margin (TTM) | 6.32% | 74.71% |
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.
BTI
0.76
Tobacco Industry
- Max
- 4.42
- Q3
- 3.65
- Median
- 2.25
- Q1
- 0.78
- Min
- 0.57
BTI’s Current Ratio of 0.76 falls into the lower quartile for the Tobacco industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
BTI
0.74
Tobacco Industry
- Max
- 1.48
- Q3
- 0.76
- Median
- 0.74
- Q1
- 0.03
- Min
- 0.01
BTI’s Debt-to-Equity Ratio of 0.74 is typical for the Tobacco 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.
BTI
1.75
Tobacco Industry
- Max
- 9.53
- Q3
- 8.30
- Median
- 4.34
- Q1
- 2.04
- Min
- -2.25
In the lower quartile for the Tobacco industry, BTI’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | ADM | BTI |
|---|---|---|
| Current Ratio (TTM) | 1.38 | 0.76 |
| Quick Ratio (TTM) | 0.81 | 0.52 |
| Debt-to-Equity Ratio (TTM) | 0.56 | 0.74 |
| Debt-to-Asset Ratio (TTM) | 0.23 | 0.31 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.24 | 6.94 |
| Interest Coverage Ratio (TTM) | 2.31 | 1.75 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADM and BTI. 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.
BTI
6.71%
Tobacco Industry
- Max
- 6.94%
- Q3
- 6.23%
- Median
- 2.98%
- Q1
- 0.37%
- Min
- 0.00%
With a Dividend Yield of 6.71%, BTI offers a more attractive income stream than most of its peers in the Tobacco industry, signaling a strong commitment to shareholder returns.
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.
BTI
171.09%
Tobacco Industry
- Max
- 171.09%
- Q3
- 98.77%
- Median
- 67.00%
- Q1
- 13.01%
- Min
- 0.00%
BTI’s Dividend Payout Ratio of 171.09% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ADM | BTI |
|---|---|---|
| Dividend Yield (TTM) | 3.65% | 6.71% |
| Dividend Payout Ratio (TTM) | 71.38% | 171.09% |
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.
BTI
25.61
Tobacco Industry
- Max
- 37.02
- Q3
- 31.70
- Median
- 27.58
- Q1
- 17.76
- Min
- 9.72
BTI’s P/E Ratio of 25.61 is within the middle range for the Tobacco industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
BTI
3.43
Tobacco Industry
- Max
- 6.56
- Q3
- 4.77
- Median
- 3.75
- Q1
- 3.29
- Min
- 3.17
The Forward PEG Ratio is often not a primary valuation metric in the Tobacco industry.
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.
BTI
3.00
Tobacco Industry
- Max
- 7.35
- Q3
- 7.29
- Median
- 4.89
- Q1
- 2.91
- Min
- 0.49
BTI’s P/S Ratio of 3.00 aligns with the market consensus for the Tobacco industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
BTI
1.57
Tobacco Industry
- Max
- 1.61
- Q3
- 1.61
- Median
- 1.52
- Q1
- 1.20
- Min
- 1.00
The P/B Ratio is often not a primary valuation metric for the Tobacco industry.
Valuation at a Glance
| Symbol | ADM | BTI |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.56 | 25.61 |
| Forward PEG Ratio (TTM) | 2.10 | 3.43 |
| Price-to-Sales Ratio (P/S, TTM) | 0.32 | 3.00 |
| Price-to-Book Ratio (P/B, TTM) | 1.21 | 1.57 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 118.63 | 8.69 |
| EV-to-EBITDA (TTM) | 10.68 | 23.93 |
| EV-to-Sales (TTM) | 0.45 | 4.22 |