ADM vs. PM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ADM and PM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
PM’s market capitalization of 278.43 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 0.54 for PM, both stocks show similar sensitivity to overall market movements.
| Symbol | ADM | PM |
|---|---|---|
| Company Name | Archer-Daniels-Midland Company | Philip Morris International Inc. |
| Country | US | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Agricultural Farm Products | Tobacco |
| CEO | Juan Ricardo Luciano | Jacek Olczak |
| Price | 55.31 USD | 178.88 USD |
| Market Cap | 26.57 billion USD | 278.43 billion USD |
| Beta | 0.66 | 0.54 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | March 17, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ADM and PM 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.
PM
-72.22%
Tobacco Industry
- Max
- 22.42%
- Q3
- 6.25%
- Median
- 4.04%
- Q1
- -111.21%
- Min
- -150.20%
PM has a negative Return on Equity of -72.22%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
PM
22.44%
Tobacco Industry
- Max
- 30.25%
- Q3
- 17.79%
- Median
- 6.37%
- Q1
- 1.66%
- Min
- 0.12%
In the upper quartile for the Tobacco industry, PM’s Return on Invested Capital of 22.44% 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.
PM
19.83%
Tobacco Industry
- Max
- 23.93%
- Q3
- 21.88%
- Median
- 11.78%
- Q1
- 6.14%
- Min
- 3.22%
PM’s Net Profit Margin of 19.83% 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.
PM
36.40%
Tobacco Industry
- Max
- 51.15%
- Q3
- 27.45%
- Median
- 14.55%
- Q1
- 4.39%
- Min
- 0.82%
An Operating Profit Margin of 36.40% places PM in the upper quartile for the Tobacco 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 | PM |
|---|---|---|
| Return on Equity (TTM) | 6.18% | -72.22% |
| Return on Assets (TTM) | 2.56% | 11.68% |
| Return on Invested Capital (TTM) | 3.42% | 22.44% |
| Net Profit Margin (TTM) | 1.63% | 19.83% |
| Operating Profit Margin (TTM) | 1.92% | 36.40% |
| Gross Profit Margin (TTM) | 6.32% | 65.11% |
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.
PM
0.79
Tobacco Industry
- Max
- 4.42
- Q3
- 3.65
- Median
- 2.25
- Q1
- 0.78
- Min
- 0.57
PM’s Current Ratio of 0.79 aligns with the median group of the Tobacco 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.
PM
-4.55
Tobacco Industry
- Max
- 1.48
- Q3
- 0.76
- Median
- 0.74
- Q1
- 0.03
- Min
- 0.01
PM has a Debt-to-Equity Ratio of -4.55, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
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.
PM
9.53
Tobacco Industry
- Max
- 9.53
- Q3
- 8.30
- Median
- 4.34
- Q1
- 2.04
- Min
- -2.25
PM’s Interest Coverage Ratio of 9.53 is in the upper quartile for the Tobacco industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ADM | PM |
|---|---|---|
| Current Ratio (TTM) | 1.38 | 0.79 |
| Quick Ratio (TTM) | 0.81 | 0.79 |
| Debt-to-Equity Ratio (TTM) | 0.56 | -4.55 |
| Debt-to-Asset Ratio (TTM) | 0.23 | 0.76 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.24 | 2.82 |
| Interest Coverage Ratio (TTM) | 2.31 | 9.53 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ADM and PM. 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.
PM
3.02%
Tobacco Industry
- Max
- 6.94%
- Q3
- 6.23%
- Median
- 2.98%
- Q1
- 0.37%
- Min
- 0.00%
PM’s Dividend Yield of 3.02% is consistent with its peers in the Tobacco 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.
PM
108.91%
Tobacco Industry
- Max
- 171.09%
- Q3
- 98.77%
- Median
- 67.00%
- Q1
- 13.01%
- Min
- 0.00%
PM’s Dividend Payout Ratio of 108.91% 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 | PM |
|---|---|---|
| Dividend Yield (TTM) | 3.65% | 3.02% |
| Dividend Payout Ratio (TTM) | 71.38% | 108.91% |
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.
PM
36.58
Tobacco Industry
- Max
- 37.02
- Q3
- 31.70
- Median
- 27.58
- Q1
- 17.76
- Min
- 9.72
A P/E Ratio of 36.58 places PM in the upper quartile for the Tobacco industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
PM
4.12
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.
PM
7.26
Tobacco Industry
- Max
- 7.35
- Q3
- 7.29
- Median
- 4.89
- Q1
- 2.91
- Min
- 0.49
PM’s P/S Ratio of 7.26 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.
PM
-25.50
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 | PM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.56 | 36.58 |
| Forward PEG Ratio (TTM) | 2.10 | 4.12 |
| Price-to-Sales Ratio (P/S, TTM) | 0.32 | 7.26 |
| Price-to-Book Ratio (P/B, TTM) | 1.21 | -25.50 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 118.63 | 27.31 |
| EV-to-EBITDA (TTM) | 10.68 | 20.18 |
| EV-to-Sales (TTM) | 0.45 | 8.44 |