ADM vs. HSY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADM and HSY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ADM’s market capitalization stands at 26.57 billion USD, while HSY’s is 35.75 billion USD, indicating their market valuations are broadly comparable.
ADM’s beta of 0.66 points to significantly higher volatility compared to HSY (beta: 0.28), suggesting ADM has greater potential for both gains and losses relative to market movements.
| Symbol | ADM | HSY |
|---|---|---|
| Company Name | Archer-Daniels-Midland Company | The Hershey Company |
| Country | US | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Agricultural Farm Products | Food Confectioners |
| CEO | Juan Ricardo Luciano | Michele Gross Buck |
| Price | 55.31 USD | 176.47 USD |
| Market Cap | 26.57 billion USD | 35.75 billion USD |
| Beta | 0.66 | 0.28 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADM and HSY 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.
HSY
37.42%
Food Confectioners Industry
- Max
- 37.69%
- Q3
- 37.49%
- Median
- 25.36%
- Q1
- 12.55%
- Min
- 10.29%
HSY’s Return on Equity of 37.42% is on par with the norm for the Food Confectioners 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.
HSY
17.71%
Food Confectioners Industry
- Max
- 17.71%
- Q3
- 14.38%
- Median
- 9.80%
- Q1
- -20.38%
- Min
- -72.51%
In the upper quartile for the Food Confectioners industry, HSY’s Return on Invested Capital of 17.71% 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.
HSY
15.32%
Food Confectioners Industry
- Max
- 15.32%
- Q3
- 13.13%
- Median
- 11.66%
- Q1
- 10.66%
- Min
- 9.88%
A Net Profit Margin of 15.32% places HSY in the upper quartile for the Food Confectioners 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.
HSY
21.26%
Food Confectioners Industry
- Max
- 21.20%
- Q3
- 17.05%
- Median
- 15.39%
- Q1
- 14.29%
- Min
- 11.79%
HSY’s Operating Profit Margin of 21.26% is exceptionally high, placing it well above the typical range for the Food Confectioners industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | ADM | HSY |
|---|---|---|
| Return on Equity (TTM) | 6.18% | 37.42% |
| Return on Assets (TTM) | 2.56% | 11.80% |
| Return on Invested Capital (TTM) | 3.42% | 17.71% |
| Net Profit Margin (TTM) | 1.63% | 15.32% |
| Operating Profit Margin (TTM) | 1.92% | 21.26% |
| Gross Profit Margin (TTM) | 6.32% | 42.91% |
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.
HSY
1.59
Food Confectioners Industry
- Max
- 1.59
- Q3
- 1.20
- Median
- 0.80
- Q1
- 0.70
- Min
- 0.61
HSY’s Current Ratio of 1.59 is in the upper quartile for the Food Confectioners 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.
HSY
1.34
Food Confectioners Industry
- Max
- 1.59
- Q3
- 1.40
- Median
- 1.06
- Q1
- 0.59
- Min
- 0.01
HSY’s Debt-to-Equity Ratio of 1.34 is typical for the Food Confectioners 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.
HSY
12.63
Food Confectioners Industry
- Max
- 12.63
- Q3
- 11.88
- Median
- 11.13
- Q1
- 8.85
- Min
- 6.56
HSY’s Interest Coverage Ratio of 12.63 is in the upper quartile for the Food Confectioners industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADM | HSY |
|---|---|---|
| Current Ratio (TTM) | 1.38 | 1.59 |
| Quick Ratio (TTM) | 0.81 | 1.11 |
| Debt-to-Equity Ratio (TTM) | 0.56 | 1.34 |
| Debt-to-Asset Ratio (TTM) | 0.23 | 0.45 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.24 | 1.91 |
| Interest Coverage Ratio (TTM) | 2.31 | 12.63 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADM and HSY. 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.
HSY
3.11%
Food Confectioners Industry
- Max
- 3.28%
- Q3
- 2.98%
- Median
- 2.80%
- Q1
- 2.16%
- Min
- 0.53%
With a Dividend Yield of 3.11%, HSY offers a more attractive income stream than most of its peers in the Food Confectioners 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.
HSY
65.72%
Food Confectioners Industry
- Max
- 66.48%
- Q3
- 65.91%
- Median
- 61.19%
- Q1
- 49.66%
- Min
- 28.65%
HSY’s Dividend Payout Ratio of 65.72% is within the typical range for the Food Confectioners industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ADM | HSY |
|---|---|---|
| Dividend Yield (TTM) | 3.65% | 3.11% |
| Dividend Payout Ratio (TTM) | 71.38% | 65.72% |
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.
HSY
21.71
Food Confectioners Industry
- Max
- 27.38
- Q3
- 25.74
- Median
- 22.87
- Q1
- 20.36
- Min
- 19.81
HSY’s P/E Ratio of 21.71 is within the middle range for the Food Confectioners 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.
HSY
2.05
Food Confectioners Industry
- Max
- 11.13
- Q3
- 8.03
- Median
- 4.93
- Q1
- 2.65
- Min
- 1.94
In the lower quartile for the Food Confectioners industry, HSY’s Forward PEG Ratio of 2.05 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.
HSY
3.32
Food Confectioners Industry
- Max
- 4.07
- Q3
- 3.38
- Median
- 2.78
- Q1
- 2.35
- Min
- 2.17
HSY’s P/S Ratio of 3.32 aligns with the market consensus for the Food Confectioners 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.
HSY
7.64
Food Confectioners Industry
- Max
- 7.23
- Q3
- 7.04
- Median
- 5.25
- Q1
- 3.33
- Min
- 2.77
At 7.64, HSY’s P/B Ratio is at an extreme premium to the Food Confectioners 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 | HSY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.56 | 21.71 |
| Forward PEG Ratio (TTM) | 2.10 | 2.05 |
| Price-to-Sales Ratio (P/S, TTM) | 0.32 | 3.32 |
| Price-to-Book Ratio (P/B, TTM) | 1.21 | 7.64 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 118.63 | 19.63 |
| EV-to-EBITDA (TTM) | 10.68 | 16.24 |
| EV-to-Sales (TTM) | 0.45 | 3.77 |