Archer Daniels Midland (ADM) & Input Capital (INPCF) Critical Review

Archer Daniels Midland (NYSE:ADM) and Input Capital (OTCMKTS:INPCF) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Institutional and Insider Ownership

77.2% of Archer Daniels Midland shares are owned by institutional investors. 0.9% of Archer Daniels Midland shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Archer Daniels Midland and Input Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archer Daniels Midland 0 6 5 0 2.45
Input Capital 0 0 0 0 N/A

Archer Daniels Midland currently has a consensus target price of $49.93, suggesting a potential upside of 15.62%. Given Archer Daniels Midland’s higher possible upside, equities research analysts plainly believe Archer Daniels Midland is more favorable than Input Capital.

Dividends

Archer Daniels Midland pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. Input Capital does not pay a dividend. Archer Daniels Midland pays out 40.0% of its earnings in the form of a dividend. Archer Daniels Midland has increased its dividend for 43 consecutive years.

Profitability

This table compares Archer Daniels Midland and Input Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archer Daniels Midland 2.81% 10.51% 4.94%
Input Capital N/A N/A N/A

Earnings and Valuation

This table compares Archer Daniels Midland and Input Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archer Daniels Midland $64.34 billion 0.38 $1.81 billion $3.50 12.34
Input Capital N/A N/A N/A N/A N/A

Archer Daniels Midland has higher revenue and earnings than Input Capital.

Summary

Archer Daniels Midland beats Input Capital on 10 of the 11 factors compared between the two stocks.

Archer Daniels Midland Company Profile

Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally. The company operates through four segments: Origination, Oilseeds, Carbohydrate Solutions, and Nutrition. It buys, stores, cleans, and transports agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, as well as resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry. The company also engages in agricultural commodities merchandising and handling activities; and activities related to structured trade finance, and import and distribution of agricultural feed products. In addition, it offers vegetable oils and protein meals; ingredients for the food, feed, energy, and industrial products industries; crude vegetable oils, salad oils, margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, the company provides peanuts, tree nuts, peanut-derived ingredients, cottonseed flour, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, dextrose, and bioproducts; alcohol and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal, as well as distillers' grains; and citric acids. Additionally, the company provides natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and foods. It also engages in futures commission merchant and insurance services. Archer-Daniels-Midland Company was founded in 1902 and is headquartered in Chicago, Illinois.

Input Capital Company Profile

Input Capital Corp. operates as an agricultural commodity streaming company in Canada. It provides capital to farmers to assist with the working capital needs of their farm. The company sells its products to grain handling companies and canola crushing plants located in Alberta, Saskatchewan, and Manitoba, as well as in the Montana and North Dakota. Input Capital Corp. is headquartered in Regina, Canada.

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