ADM vs. BUD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADM and BUD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BUD’s market capitalization of 132.17 billion USD is significantly greater than ADM’s 26.57 billion USD, highlighting its more substantial market valuation.
With betas of 0.66 for ADM and 0.86 for BUD, both stocks show similar sensitivity to overall market movements.
BUD 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 | BUD |
|---|---|---|
| Company Name | Archer-Daniels-Midland Company | Anheuser-Busch InBev SA/NV |
| Country | US | BE |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Agricultural Farm Products | Beverages - Alcoholic |
| CEO | Juan Ricardo Luciano | Michel Dimitrios Doukeris |
| Price | 55.31 USD | 68.91 USD |
| Market Cap | 26.57 billion USD | 132.17 billion USD |
| Beta | 0.66 | 0.86 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | July 1, 2009 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ADM and BUD 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.
BUD
8.34%
Beverages - Alcoholic Industry
- Max
- 14.93%
- Q3
- 11.65%
- Median
- 9.82%
- Q1
- 7.98%
- Min
- 7.40%
BUD’s Return on Equity of 8.34% is on par with the norm for the Beverages - Alcoholic 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.
BUD
6.50%
Beverages - Alcoholic Industry
- Max
- 8.96%
- Q3
- 8.78%
- Median
- 7.43%
- Q1
- 6.60%
- Min
- 6.50%
BUD’s Return on Invested Capital of 6.50% is in the lower quartile for the Beverages - Alcoholic industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
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.
BUD
11.74%
Beverages - Alcoholic Industry
- Max
- 15.74%
- Q3
- 11.09%
- Median
- 7.37%
- Q1
- 4.71%
- Min
- 3.46%
A Net Profit Margin of 11.74% places BUD in the upper quartile for the Beverages - Alcoholic 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.
BUD
26.22%
Beverages - Alcoholic Industry
- Max
- 26.22%
- Q3
- 21.64%
- Median
- 11.53%
- Q1
- 8.73%
- Min
- 4.73%
An Operating Profit Margin of 26.22% places BUD in the upper quartile for the Beverages - Alcoholic industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ADM | BUD |
|---|---|---|
| Return on Equity (TTM) | 6.18% | 8.34% |
| Return on Assets (TTM) | 2.56% | 3.34% |
| Return on Invested Capital (TTM) | 3.42% | 6.50% |
| Net Profit Margin (TTM) | 1.63% | 11.74% |
| Operating Profit Margin (TTM) | 1.92% | 26.22% |
| Gross Profit Margin (TTM) | 6.32% | 55.59% |
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.
BUD
0.70
Beverages - Alcoholic Industry
- Max
- 2.16
- Q3
- 1.70
- Median
- 1.37
- Q1
- 0.95
- Min
- 0.70
BUD’s Current Ratio of 0.70 falls into the lower quartile for the Beverages - Alcoholic 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.
BUD
0.92
Beverages - Alcoholic Industry
- Max
- 0.92
- Q3
- 0.90
- Median
- 0.66
- Q1
- 0.16
- Min
- 0.03
BUD’s leverage is in the upper quartile of the Beverages - Alcoholic industry, with a Debt-to-Equity Ratio of 0.92. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
BUD
3.73
Beverages - Alcoholic Industry
- Max
- 10.02
- Q3
- 10.02
- Median
- 3.93
- Q1
- 3.73
- Min
- 3.32
BUD’s Interest Coverage Ratio of 3.73 is positioned comfortably within the norm for the Beverages - Alcoholic industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ADM | BUD |
|---|---|---|
| Current Ratio (TTM) | 1.38 | 0.70 |
| Quick Ratio (TTM) | 0.81 | 0.55 |
| Debt-to-Equity Ratio (TTM) | 0.56 | 0.92 |
| Debt-to-Asset Ratio (TTM) | 0.23 | 0.35 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.24 | 3.85 |
| Interest Coverage Ratio (TTM) | 2.31 | 3.73 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADM and BUD. 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.
BUD
1.31%
Beverages - Alcoholic Industry
- Max
- 1,539.93%
- Q3
- 3.36%
- Median
- 1.63%
- Q1
- 0.78%
- Min
- 0.00%
BUD’s Dividend Yield of 1.31% is consistent with its peers in the Beverages - Alcoholic 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.
BUD
0.00%
Beverages - Alcoholic Industry
- Max
- 73.84%
- Q3
- 45.81%
- Median
- 33.17%
- Q1
- 7.61%
- Min
- 0.00%
BUD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | ADM | BUD |
|---|---|---|
| Dividend Yield (TTM) | 3.65% | 1.31% |
| Dividend Payout Ratio (TTM) | 71.38% | 0.00% |
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.
BUD
20.03
Beverages - Alcoholic Industry
- Max
- 29.99
- Q3
- 27.46
- Median
- 17.07
- Q1
- 13.71
- Min
- 9.30
BUD’s P/E Ratio of 20.03 is within the middle range for the Beverages - Alcoholic 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.
BUD
1.20
Beverages - Alcoholic Industry
- Max
- 2.24
- Q3
- 2.12
- Median
- 1.48
- Q1
- 1.20
- Min
- 1.19
BUD’s Forward PEG Ratio of 1.20 is within the middle range of its peers in the Beverages - Alcoholic industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
BUD
2.34
Beverages - Alcoholic Industry
- Max
- 2.32
- Q3
- 2.30
- Median
- 1.63
- Q1
- 0.89
- Min
- 0.76
With a P/S Ratio of 2.34, BUD trades at a valuation that eclipses even the highest in the Beverages - Alcoholic 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.
BUD
1.77
Beverages - Alcoholic Industry
- Max
- 2.39
- Q3
- 2.34
- Median
- 1.97
- Q1
- 1.54
- Min
- 0.74
BUD’s P/B Ratio of 1.77 is within the conventional range for the Beverages - Alcoholic 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 | BUD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.56 | 20.03 |
| Forward PEG Ratio (TTM) | 2.10 | 1.20 |
| Price-to-Sales Ratio (P/S, TTM) | 0.32 | 2.34 |
| Price-to-Book Ratio (P/B, TTM) | 1.21 | 1.77 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 118.63 | -- |
| EV-to-EBITDA (TTM) | 10.68 | 12.53 |
| EV-to-Sales (TTM) | 0.45 | 3.38 |