ADM vs. COST: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADM and COST, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ADM | COST |
|---|---|---|
| Company Name | Archer-Daniels-Midland Company | Costco Wholesale Corporation |
| Country | United States | United States |
| GICS Sector | Consumer Staples | Consumer Staples |
| GICS Industry | Food Products | Consumer Staples Distribution & Retail |
| Market Capitalization | 28.18 billion USD | 398.69 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | March 17, 1980 | July 9, 1986 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ADM and COST 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.
Historical Performance at a Glance
| Symbol | ADM | COST |
|---|---|---|
| 5-Day Price Return | -1.26% | -3.22% |
| 13-Week Price Return | -5.32% | -7.88% |
| 26-Week Price Return | 15.72% | -13.64% |
| 52-Week Price Return | 9.21% | -3.96% |
| Month-to-Date Return | -4.39% | -1.99% |
| Year-to-Date Return | 14.55% | -2.51% |
| 10-Day Avg. Volume | 3.51M | 2.44M |
| 3-Month Avg. Volume | 3.62M | 2.34M |
| 3-Month Volatility | 27.80% | 17.78% |
| Beta | 0.71 | 1.00 |
Profitability
Return on Equity (TTM)
ADM
5.33%
Food Products Industry
- Max
- 30.51%
- Q3
- 16.47%
- Median
- 10.51%
- Q1
- 7.01%
- Min
- -1.37%
ADM’s Return on Equity of 5.33% is in the lower quartile for the Food Products industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
COST
30.47%
Consumer Staples Distribution & Retail Industry
- Max
- 38.03%
- Q3
- 20.64%
- Median
- 13.48%
- Q1
- 6.46%
- Min
- -9.87%
In the upper quartile for the Consumer Staples Distribution & Retail industry, COST’s Return on Equity of 30.47% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
ADM
1.43%
Food Products Industry
- Max
- 15.24%
- Q3
- 9.30%
- Median
- 6.45%
- Q1
- 3.54%
- Min
- -1.56%
Falling into the lower quartile for the Food Products industry, ADM’s Net Profit Margin of 1.43% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
COST
2.94%
Consumer Staples Distribution & Retail Industry
- Max
- 6.41%
- Q3
- 3.85%
- Median
- 2.53%
- Q1
- 1.66%
- Min
- -0.70%
COST’s Net Profit Margin of 2.94% is aligned with the median group of its peers in the Consumer Staples Distribution & Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ADM
1.08%
Food Products Industry
- Max
- 24.83%
- Q3
- 14.27%
- Median
- 9.47%
- Q1
- 5.68%
- Min
- 0.39%
ADM’s Operating Profit Margin of 1.08% is in the lower quartile for the Food Products industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
COST
3.77%
Consumer Staples Distribution & Retail Industry
- Max
- 9.42%
- Q3
- 5.53%
- Median
- 3.90%
- Q1
- 2.53%
- Min
- -0.11%
COST’s Operating Profit Margin of 3.77% is around the midpoint for the Consumer Staples Distribution & Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADM | COST |
|---|---|---|
| Return on Equity (TTM) | 5.33% | 30.47% |
| Return on Assets (TTM) | 2.26% | 10.83% |
| Net Profit Margin (TTM) | 1.43% | 2.94% |
| Operating Profit Margin (TTM) | 1.08% | 3.77% |
| Gross Profit Margin (TTM) | 6.22% | 12.84% |
Financial Strength
Current Ratio (MRQ)
ADM
1.37
Food Products Industry
- Max
- 4.14
- Q3
- 2.43
- Median
- 1.62
- Q1
- 1.25
- Min
- 0.57
ADM’s Current Ratio of 1.37 aligns with the median group of the Food Products industry, indicating that its short-term liquidity is in line with its sector peers.
COST
1.03
Consumer Staples Distribution & Retail Industry
- Max
- 1.76
- Q3
- 1.31
- Median
- 0.99
- Q1
- 0.81
- Min
- 0.52
COST’s Current Ratio of 1.03 aligns with the median group of the Consumer Staples Distribution & Retail industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
ADM
0.35
Food Products Industry
- Max
- 1.84
- Q3
- 0.91
- Median
- 0.50
- Q1
- 0.24
- Min
- 0.00
ADM’s Debt-to-Equity Ratio of 0.35 is typical for the Food Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
COST
0.20
Consumer Staples Distribution & Retail Industry
- Max
- 3.58
- Q3
- 1.67
- Median
- 1.07
- Q1
- 0.30
- Min
- 0.00
Falling into the lower quartile for the Consumer Staples Distribution & Retail industry, COST’s Debt-to-Equity Ratio of 0.20 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
ADM
22.44
Food Products Industry
- Max
- 70.39
- Q3
- 32.08
- Median
- 9.51
- Q1
- 4.71
- Min
- -1.69
ADM’s Interest Coverage Ratio of 22.44 is positioned comfortably within the norm for the Food Products industry, indicating a standard and healthy capacity to cover its interest payments.
COST
91.27
Consumer Staples Distribution & Retail Industry
- Max
- 24.36
- Q3
- 13.75
- Median
- 5.55
- Q1
- 2.86
- Min
- -5.51
With an Interest Coverage Ratio of 91.27, COST demonstrates a superior capacity to service its debt, placing it well above the typical range for the Consumer Staples Distribution & Retail industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ADM | COST |
|---|---|---|
| Current Ratio (MRQ) | 1.37 | 1.03 |
| Quick Ratio (MRQ) | 0.91 | 0.55 |
| Debt-to-Equity Ratio (MRQ) | 0.35 | 0.20 |
| Interest Coverage Ratio (TTM) | 22.44 | 91.27 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ADM
3.47%
Food Products Industry
- Max
- 8.11%
- Q3
- 4.40%
- Median
- 2.72%
- Q1
- 1.66%
- Min
- 0.00%
ADM’s Dividend Yield of 3.47% is consistent with its peers in the Food Products industry, providing a dividend return that is standard for its sector.
COST
0.55%
Consumer Staples Distribution & Retail Industry
- Max
- 6.30%
- Q3
- 3.28%
- Median
- 1.64%
- Q1
- 0.00%
- Min
- 0.00%
COST’s Dividend Yield of 0.55% is consistent with its peers in the Consumer Staples Distribution & Retail industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
ADM
82.76%
Food Products Industry
- Max
- 206.40%
- Q3
- 114.83%
- Median
- 77.75%
- Q1
- 44.21%
- Min
- 0.00%
ADM’s Dividend Payout Ratio of 82.76% is within the typical range for the Food Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
COST
34.59%
Consumer Staples Distribution & Retail Industry
- Max
- 188.48%
- Q3
- 100.66%
- Median
- 57.10%
- Q1
- 29.06%
- Min
- 0.00%
COST’s Dividend Payout Ratio of 34.59% is within the typical range for the Consumer Staples Distribution & Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADM | COST |
|---|---|---|
| Dividend Yield (TTM) | 3.47% | 0.55% |
| Dividend Payout Ratio (TTM) | 82.76% | 34.59% |
Valuation
Price-to-Earnings Ratio (TTM)
ADM
23.83
Food Products Industry
- Max
- 44.72
- Q3
- 26.73
- Median
- 17.87
- Q1
- 12.82
- Min
- 2.90
ADM’s P/E Ratio of 23.83 is within the middle range for the Food 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.
COST
48.88
Consumer Staples Distribution & Retail Industry
- Max
- 50.51
- Q3
- 32.01
- Median
- 21.81
- Q1
- 16.98
- Min
- 4.41
A P/E Ratio of 48.88 places COST in the upper quartile for the Consumer Staples Distribution & Retail industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
ADM
0.34
Food Products Industry
- Max
- 3.24
- Q3
- 1.88
- Median
- 1.05
- Q1
- 0.68
- Min
- 0.16
In the lower quartile for the Food Products industry, ADM’s P/S Ratio of 0.34 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
COST
1.44
Consumer Staples Distribution & Retail Industry
- Max
- 1.80
- Q3
- 0.96
- Median
- 0.58
- Q1
- 0.38
- Min
- 0.06
COST’s P/S Ratio of 1.44 is in the upper echelon for the Consumer Staples Distribution & Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
ADM
1.28
Food Products Industry
- Max
- 4.92
- Q3
- 2.92
- Median
- 1.93
- Q1
- 1.27
- Min
- 0.47
ADM’s P/B Ratio of 1.28 is within the conventional range for the Food 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.
COST
14.34
Consumer Staples Distribution & Retail Industry
- Max
- 8.68
- Q3
- 4.65
- Median
- 2.72
- Q1
- 1.94
- Min
- 0.46
At 14.34, COST’s P/B Ratio is at an extreme premium to the Consumer Staples Distribution & Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ADM | COST |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.83 | 48.88 |
| Price-to-Sales Ratio (TTM) | 0.34 | 1.44 |
| Price-to-Book Ratio (MRQ) | 1.28 | 14.34 |
| Price-to-Free Cash Flow Ratio (TTM) | 5.15 | 50.52 |