Head-To-Head Survey: Archer Daniels Midland (NYSE:ADM) & Farmmi (NASDAQ:FAMI)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmmi	1	0	0	0	1.00
Archer Daniels Midland	3	5	1	0	1.78

Archer Daniels Midland has a consensus price target of $58.00, suggesting a potential downside of 15.85%. Given Archer Daniels Midland’s stronger consensus rating and higher probable upside, analysts clearly believe Archer Daniels Midland is more favorable than Farmmi.

Risk and Volatility

Farmmi has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Archer Daniels Midland has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares Farmmi and Archer Daniels Midland”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmmi	$27.97 million	0.26	-$53.10 million	N/A	N/A
Archer Daniels Midland	$80.27 billion	0.41	$1.08 billion	$2.22	31.05

Archer Daniels Midland has higher revenue and earnings than Farmmi.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmmi	N/A	N/A	N/A
Archer Daniels Midland	1.34%	7.39%	3.17%

Insider and Institutional Ownership

0.3% of Farmmi shares are owned by institutional investors. Comparatively, 78.3% of Archer Daniels Midland shares are owned by institutional investors. 1.7% of Farmmi shares are owned by insiders. Comparatively, 1.2% 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 will outperform the market over the long term.

Summary

Archer Daniels Midland beats Farmmi on 10 of the 12 factors compared between the two stocks.

About Farmmi

Farmmi, Inc., through its subsidiaries, engages in processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondose, coprinus comatus, and hericium erinaceus, as well as dried edible fungi. It is also involved in trading of cotton, corn, and other agricultural products. The company's products are offered under Lishui Shangeng, Farmmi Liangpin, Forasen, and Puyangtang brands. It offers its products through local distributors to processing manufacturers, supermarkets, restaurants, cafeterias, and local specialty stores. The company was founded in 1994 and is headquartered in Lishui, China.

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.