Financial Contrast: Archer Daniels Midland (NYSE:ADM) versus Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND)

Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND) and Archer Daniels Midland (NYSE:ADM) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Volatility and Risk

Brasilagro Cia Brasileira De Propriedades Agricolas has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Archer Daniels Midland has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Dividends

Brasilagro Cia Brasileira De Propriedades Agricolas pays an annual dividend of $0.12 per share and has a dividend yield of 3.0%. Archer Daniels Midland pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. Archer Daniels Midland pays out 93.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Archer Daniels Midland has raised its dividend for 53 consecutive years. Archer Daniels Midland is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

1.2% of Brasilagro Cia Brasileira De Propriedades Agricolas shares are held by institutional investors. Comparatively, 78.3% of Archer Daniels Midland shares are held by institutional investors. 0.7% of Brasilagro Cia Brasileira De Propriedades Agricolas shares are held by insiders. Comparatively, 0.6% of Archer Daniels Midland shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Brasilagro Cia Brasileira De Propriedades Agricolas and Archer Daniels Midland’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brasilagro Cia Brasileira De Propriedades Agricolas	-0.37%	-0.19%	-0.10%
Archer Daniels Midland	1.34%	7.39%	3.17%

Valuation & Earnings

This table compares Brasilagro Cia Brasileira De Propriedades Agricolas and Archer Daniels Midland”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brasilagro Cia Brasileira De Propriedades Agricolas	$195.52 million	2.12	$24.08 million	N/A	N/A
Archer Daniels Midland	$80.27 billion	0.42	$1.08 billion	$2.22	31.25

Archer Daniels Midland has higher revenue and earnings than Brasilagro Cia Brasileira De Propriedades Agricolas.

Analyst Ratings

This is a breakdown of current recommendations for Brasilagro Cia Brasileira De Propriedades Agricolas and Archer Daniels Midland, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brasilagro Cia Brasileira De Propriedades Agricolas	1	1	0	0	1.50
Archer Daniels Midland	3	4	1	1	2.00

Archer Daniels Midland has a consensus target price of $63.86, indicating a potential downside of 7.94%. Given Archer Daniels Midland’s stronger consensus rating and higher probable upside, analysts clearly believe Archer Daniels Midland is more favorable than Brasilagro Cia Brasileira De Propriedades Agricolas.

Summary

Archer Daniels Midland beats Brasilagro Cia Brasileira De Propriedades Agricolas on 13 of the 16 factors compared between the two stocks.

About Brasilagro Cia Brasileira De Propriedades Agricolas

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil and internationally. It operates through six segments: Real Estate, Grains, Sugarcane, livestock, Cotton, and Other. The company involved in the cultivation of soybean, corn, sesame, and cotton, as well as sugarcane; and production and sale of beef calves after weaning. It also imports and exports agricultural products, livestock, and forestry activities and inputs; purchases, sells, and/or rents rural/urban properties; provides real estate brokerage services; and manages third-party assets. It operates farms through own and leased lands. BrasilAgro – Companhia Brasileira de Propriedades Agrícolas was incorporated in 2005 and is headquartered in São Paulo, Brazil.

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.