Archer Daniels Midland (NYSE:ADM – Get Free Report) and BranchOut Food (NASDAQ:BOF – Get Free Report) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares Archer Daniels Midland and BranchOut Food’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Archer Daniels Midland | 2.16% | 9.21% | 3.95% |
| BranchOut Food | -56.77% | -153.95% | -51.07% |
Earnings and Valuation
This table compares Archer Daniels Midland and BranchOut Food”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Archer Daniels Midland | $80.27 billion | 0.46 | $1.08 billion | $3.65 | 21.09 |
| BranchOut Food | $13.73 million | 2.04 | -$6.12 million | ($0.60) | -2.87 |
Archer Daniels Midland has higher revenue and earnings than BranchOut Food. BranchOut Food is trading at a lower price-to-earnings ratio than Archer Daniels Midland, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.3% of Archer Daniels Midland shares are held by institutional investors. Comparatively, 2.6% of BranchOut Food shares are held by institutional investors. 0.6% of Archer Daniels Midland shares are held by company insiders. Comparatively, 21.5% of BranchOut Food shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Archer Daniels Midland and BranchOut Food, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Archer Daniels Midland | 2 | 7 | 2 | 0 | 2.00 |
| BranchOut Food | 1 | 0 | 1 | 0 | 2.00 |
Archer Daniels Midland presently has a consensus price target of $81.75, suggesting a potential upside of 6.21%. BranchOut Food has a consensus price target of $6.00, suggesting a potential upside of 248.84%. Given BranchOut Food’s higher possible upside, analysts plainly believe BranchOut Food is more favorable than Archer Daniels Midland.
Volatility and Risk
Archer Daniels Midland has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, BranchOut Food has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Summary
Archer Daniels Midland beats BranchOut Food on 8 of the 12 factors compared between the two stocks.
About Archer Daniels Midland
Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company originates, merchandises, stores, and transports agricultural raw materials, such as oilseeds and soft seeds. It also engages in the agricultural commodity and feed product import, export, and distribution; and various structured trade finance activities. In addition, the company offers soybean meal and oil; vegetable and salad oils and protein meals; ingredients for the food, feed, energy, and industrial customers; 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, it provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol, and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; corn germ; and citric acids. Additionally, the company provides proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, and botanical extracts; 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 food products. It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. The company was founded in 1902 and is headquartered in Chicago, Illinois.
About BranchOut Food
BranchOut Food Inc. develops, markets, sells, and distributes plant-based dehydrated fruit and vegetable snacks, and powders in the United States. The company offers dehydrated fruit and vegetable-based snacks, including avocado chips, chewy banana bites, pineapple chips, brussels sprout crisps, and bell pepper crisps; avocado, banana, and blueberry powders; and industrial ingredients, such as bulk avocado powder, dried avocado pieces, and other fruit powders/pieces. It also provides chocolate covered fruit items and private label products for retailers. The company was formerly known as AvoLov, LLC and changed its name to BranchOut Food Inc. in November 2021. BranchOut Food Inc. was incorporated in 2017 and is headquartered in Bend, Oregon.
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