ADM vs. KHC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADM and KHC, 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 KHC’s is 31.55 billion USD, indicating their market valuations are broadly comparable.
ADM’s beta of 0.66 points to significantly higher volatility compared to KHC (beta: 0.23), suggesting ADM has greater potential for both gains and losses relative to market movements.
| Symbol | ADM | KHC |
|---|---|---|
| Company Name | Archer-Daniels-Midland Company | The Kraft Heinz Company |
| Country | US | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Agricultural Farm Products | Packaged Foods |
| CEO | Juan Ricardo Luciano | Carlos A. Abrams-Rivera |
| Price | 55.31 USD | 26.66 USD |
| Market Cap | 26.57 billion USD | 31.55 billion USD |
| Beta | 0.66 | 0.23 |
| Exchange | NYSE | NASDAQ |
| IPO Date | March 17, 1980 | July 6, 2015 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADM and KHC 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.
KHC
5.42%
Packaged Foods Industry
- Max
- 31.57%
- Q3
- 16.24%
- Median
- 8.30%
- Q1
- 3.79%
- Min
- -9.32%
KHC’s Return on Equity of 5.42% is on par with the norm for the Packaged Foods 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.
KHC
5.97%
Packaged Foods Industry
- Max
- 18.26%
- Q3
- 11.05%
- Median
- 6.28%
- Q1
- 4.78%
- Min
- -3.45%
KHC’s Return on Invested Capital of 5.97% is in line with the norm for the Packaged Foods 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.
KHC
10.44%
Packaged Foods Industry
- Max
- 12.82%
- Q3
- 6.72%
- Median
- 4.53%
- Q1
- 2.61%
- Min
- -2.02%
A Net Profit Margin of 10.44% places KHC in the upper quartile for the Packaged Foods 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.
KHC
6.20%
Packaged Foods Industry
- Max
- 19.80%
- Q3
- 10.83%
- Median
- 6.62%
- Q1
- 4.39%
- Min
- 1.79%
KHC’s Operating Profit Margin of 6.20% is around the midpoint for the Packaged Foods industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ADM | KHC |
|---|---|---|
| Return on Equity (TTM) | 6.18% | 5.42% |
| Return on Assets (TTM) | 2.56% | 2.94% |
| Return on Invested Capital (TTM) | 3.42% | 5.97% |
| Net Profit Margin (TTM) | 1.63% | 10.44% |
| Operating Profit Margin (TTM) | 1.92% | 6.20% |
| Gross Profit Margin (TTM) | 6.32% | 34.56% |
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.
KHC
1.31
Packaged Foods Industry
- Max
- 4.91
- Q3
- 2.66
- Median
- 1.35
- Q1
- 1.02
- Min
- 0.45
KHC’s Current Ratio of 1.31 aligns with the median group of the Packaged Foods industry, indicating that its short-term liquidity is in line with its sector 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.
KHC
0.44
Packaged Foods Industry
- Max
- 2.61
- Q3
- 1.56
- Median
- 0.82
- Q1
- 0.36
- Min
- 0.00
KHC’s Debt-to-Equity Ratio of 0.44 is typical for the Packaged Foods 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.
KHC
1.72
Packaged Foods Industry
- Max
- 12.62
- Q3
- 8.96
- Median
- 3.16
- Q1
- 1.69
- Min
- -3.36
KHC’s Interest Coverage Ratio of 1.72 is positioned comfortably within the norm for the Packaged Foods industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ADM | KHC |
|---|---|---|
| Current Ratio (TTM) | 1.38 | 1.31 |
| Quick Ratio (TTM) | 0.81 | 0.81 |
| Debt-to-Equity Ratio (TTM) | 0.56 | 0.44 |
| Debt-to-Asset Ratio (TTM) | 0.23 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.24 | 7.18 |
| Interest Coverage Ratio (TTM) | 2.31 | 1.72 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADM and KHC. 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.
KHC
6.00%
Packaged Foods Industry
- Max
- 17.31%
- Q3
- 4.06%
- Median
- 2.28%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 6.00%, KHC offers a more attractive income stream than most of its peers in the Packaged Foods 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.
KHC
72.39%
Packaged Foods Industry
- Max
- 203.43%
- Q3
- 70.94%
- Median
- 16.83%
- Q1
- 0.00%
- Min
- 0.00%
KHC’s Dividend Payout Ratio of 72.39% is in the upper quartile for the Packaged Foods 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.
Dividend at a Glance
| Symbol | ADM | KHC |
|---|---|---|
| Dividend Yield (TTM) | 3.65% | 6.00% |
| Dividend Payout Ratio (TTM) | 71.38% | 72.39% |
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.
KHC
12.03
Packaged Foods Industry
- Max
- 38.86
- Q3
- 28.67
- Median
- 20.65
- Q1
- 13.95
- Min
- 3.16
In the lower quartile for the Packaged Foods industry, KHC’s P/E Ratio of 12.03 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.
KHC
6.69
Packaged Foods Industry
- Max
- 9.46
- Q3
- 4.68
- Median
- 1.99
- Q1
- 1.27
- Min
- 0.07
A Forward PEG Ratio of 6.69 places KHC in the upper quartile for the Packaged Foods industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
KHC
1.24
Packaged Foods Industry
- Max
- 2.51
- Q3
- 1.41
- Median
- 0.90
- Q1
- 0.65
- Min
- 0.18
KHC’s P/S Ratio of 1.24 aligns with the market consensus for the Packaged Foods 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.
KHC
0.65
Packaged Foods Industry
- Max
- 4.92
- Q3
- 3.32
- Median
- 2.11
- Q1
- 1.47
- Min
- 0.62
KHC’s P/B Ratio of 0.65 is in the lower quartile for the Packaged Foods industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ADM | KHC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.56 | 12.03 |
| Forward PEG Ratio (TTM) | 2.10 | 6.69 |
| Price-to-Sales Ratio (P/S, TTM) | 0.32 | 1.24 |
| Price-to-Book Ratio (P/B, TTM) | 1.21 | 0.65 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 118.63 | 10.43 |
| EV-to-EBITDA (TTM) | 10.68 | 18.80 |
| EV-to-Sales (TTM) | 0.45 | 2.01 |