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ADM vs KHC

ADM
Archer-Daniels-Midland Company
NEUTRAL
Price
$67.51
Market Cap
$32.44B
Sector
Consumer Defensive
AI Confidence
72%
KHC
The Kraft Heinz Company
BEARISH
Price
$23.06
Market Cap
$27.3B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
ADM
27.22
KHC
--
Forward P/E
ADM
15.91
KHC
10.77
P/B Ratio
ADM
1.44
KHC
0.66
P/S Ratio
ADM
0.39
KHC
1.09
EV/EBITDA
ADM
16.15
KHC
7.95

Profitability

Gross Margin
ADM
6.22%
KHC
33.32%
Operating Margin
ADM
1.95%
KHC
17.48%
Profit Margin
ADM
1.43%
KHC
-23.44%
ROE
ADM
5.24%
KHC
-12.84%
ROA
ADM
1.75%
KHC
3.5%

Growth

Revenue Growth
ADM
2.2%
KHC
-3.4%
Earnings Growth
ADM
489.1%
KHC
-69.2%

Financial Health

Debt/Equity
ADM
0.4
KHC
0.52
Current Ratio
ADM
1.37
KHC
1.15
Quick Ratio
ADM
0.37
KHC
0.68

Dividends

Dividend Yield
ADM
3.04%
KHC
6.94%
Payout Ratio
ADM
82.52%
KHC
73.06%

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
KHC BEARISH

The Kraft Heinz Company exhibits severe financial deterioration, highlighted by a critical Piotroski F-Score of 2/9, indicating weak fundamental health. While the stock appears cheap on a Price-to-Book basis (0.66) and offers an attractive dividend yield of 6.94%, these are offset by negative revenue growth (-3.40%) and a staggering decline in earnings growth (-69.20%). The combination of bearish insider sentiment, a 0/100 technical trend, and negative net profit margins suggests a classic 'value trap' scenario where low valuation metrics are justified by declining business fundamentals.

Strengths
Trading significantly below book value (P/B 0.66)
Strong history of beating quarterly earnings estimates (3/4 last 4 quarters)
Positive operating margin of 17.48% despite net losses
Risks
Critical financial health deterioration (Piotroski F-Score 2/9)
Severe contraction in YoY earnings growth (-69.20%)
Negative net profit margin (-23.44%) and negative ROE (-12.84%)

Compare Another Pair

ADM vs KHC: Head-to-Head Comparison

This page compares Archer-Daniels-Midland Company (ADM) and The Kraft Heinz Company (KHC) 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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