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ADM vs COST

ADM
Archer-Daniels-Midland Company
NEUTRAL
Price
$67.51
Market Cap
$32.44B
Sector
Consumer Defensive
AI Confidence
72%
COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
ADM
27.22
COST
51.82
Forward P/E
ADM
15.91
COST
44.4
P/B Ratio
ADM
1.44
COST
13.78
P/S Ratio
ADM
0.39
COST
1.55
EV/EBITDA
ADM
16.15
COST
32.11

Profitability

Gross Margin
ADM
6.22%
COST
12.93%
Operating Margin
ADM
1.95%
COST
3.74%
Profit Margin
ADM
1.43%
COST
2.99%
ROE
ADM
5.24%
COST
29.65%
ROA
ADM
1.75%
COST
8.72%

Growth

Revenue Growth
ADM
2.2%
COST
9.2%
Earnings Growth
ADM
489.1%
COST
13.9%

Financial Health

Debt/Equity
ADM
0.4
COST
0.26
Current Ratio
ADM
1.37
COST
1.06
Quick Ratio
ADM
0.37
COST
0.54

Dividends

Dividend Yield
ADM
3.04%
COST
0.52%
Payout Ratio
ADM
82.52%
COST
27.04%

AI Verdict

ADM NEUTRAL

ADM's deterministic health score is concerning with a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. The stock trades above its Graham Number of $51.14 at $67.51, suggesting overvaluation on a defensive basis, though growth-based intrinsic value is higher at $73.16. Profitability metrics are weak, with low margins and ROE, but the company shows strong recent earnings growth and a solid dividend yield of 3.04%. Analysts consensus is 'hold' with a target price below current levels, and technical trend signals bearishness, offsetting some positives.

Strengths
Strong recent earnings growth with YoY increase of 489.1% and Q/Q growth of 500.00%
Dividend yield of 3.04% is attractive relative to sector and market
Debt/Equity ratio of 0.40 indicates conservative leverage
Risks
Piotroski F-Score of 4/9 suggests weak to stable financial health, limiting confidence in operational strength
Very low profitability: profit margin (1.43%), operating margin (1.95%), and ROE (5.24%) lag behind peers
High P/E of 27.22 relative to forward P/E of 15.91 implies elevated near-term expectations
COST NEUTRAL

COST shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Low debt with D/E ratio of 0.26
Strong ROE of 29.7%
Risks
High valuation with P/E of 51.8
Premium vs Graham Number ($176.89)
Low profit margin of 3.0%

Compare Another Pair

ADM vs COST: Head-to-Head Comparison

This page compares Archer-Daniels-Midland Company (ADM) and Costco Wholesale Corporation (COST) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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