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ADM vs HSY

ADM
Archer-Daniels-Midland Company
NEUTRAL
Price
$67.51
Market Cap
$32.44B
Sector
Consumer Defensive
AI Confidence
72%
HSY
The Hershey Company
NEUTRAL
Price
$179.20
Market Cap
$36.12B
Sector
Consumer Defensive
AI Confidence
72%

Valuation

P/E Ratio
ADM
27.22
HSY
26.83
Forward P/E
ADM
15.91
HSY
21.33
P/B Ratio
ADM
1.44
HSY
7.96
P/S Ratio
ADM
0.39
HSY
3.14
EV/EBITDA
ADM
16.15
HSY
16.7

Profitability

Gross Margin
ADM
6.22%
HSY
37.73%
Operating Margin
ADM
1.95%
HSY
13.54%
Profit Margin
ADM
1.43%
HSY
11.84%
ROE
ADM
5.24%
HSY
31.01%
ROA
ADM
1.75%
HSY
9.33%

Growth

Revenue Growth
ADM
2.2%
HSY
6.5%
Earnings Growth
ADM
489.1%
HSY
-38.2%

Financial Health

Debt/Equity
ADM
0.4
HSY
1.26
Current Ratio
ADM
1.37
HSY
1.36
Quick Ratio
ADM
0.37
HSY
0.66

Dividends

Dividend Yield
ADM
3.04%
HSY
3.06%
Payout Ratio
ADM
82.52%
HSY
81.91%

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
HSY NEUTRAL

Hershey (HSY) trades at a premium valuation with solid profitability and a resilient brand, but faces near-term headwinds reflected in declining earnings and insider selling. Despite a strong quarterly earnings surprise trend over the past two years, YoY EPS has contracted sharply (-44.4%), and operating margins have compressed amid cost pressures. The stock is down 10.8% over 3Y and remains 14% below its 52-week high, though recent 6M performance (+13.9%) suggests stabilization. Relative to peers like KMB and CL, HSY exhibits better growth and lower leverage than most, but its P/E of 26.8x exceeds the sector average of 22.5x and forward P/E of 21.3x offers limited upside given earnings volatility.

Strengths
ROE of 31.01% demonstrates efficient use of equity capital, well above the sector average of 120.59% when excluding outliers like CL (293.63%) and KMB (136.88%)
Consistent earnings beat streak: 3 out of last 4 quarters beat estimates with an average surprise of +16.89%, indicating strong operational execution and conservative guidance
Revenue growth of 6.5% YoY outpaces peer average of 5.46%, showing pricing power and demand resilience in a defensive sector
Risks
Earnings growth collapse: YoY EPS down -38.2%, Q/Q down -38.1%, signaling severe margin pressure or one-time charges that could persist
High P/E ratio of 26.83 vs forward P/E of 21.33 implies significant multiple contraction is priced in, leaving little room for error
Payout ratio of 81.91% is elevated for a company with earnings volatility, raising sustainability concerns if profitability does not rebound

Compare Another Pair

ADM vs HSY: Head-to-Head Comparison

This page compares Archer-Daniels-Midland Company (ADM) and The Hershey Company (HSY) 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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