Contrasting Archer Daniels Midland (NYSE:ADM) and Sino Agro Food (OTCMKTS:SIAF)

Sino Agro Food (OTCMKTS:SIAF) and Archer Daniels Midland (NYSE:ADM) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Institutional and Insider Ownership

78.3% of Archer Daniels Midland shares are held by institutional investors. 5.9% of Sino Agro Food shares are held by insiders. Comparatively, 1.2% of Archer Daniels Midland shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sino Agro Food and Archer Daniels Midland, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sino Agro Food	0	0	0	0	0.00
Archer Daniels Midland	3	5	1	0	1.78

Archer Daniels Midland has a consensus price target of $54.50, indicating a potential downside of 18.99%. Given Archer Daniels Midland’s stronger consensus rating and higher possible upside, analysts clearly believe Archer Daniels Midland is more favorable than Sino Agro Food.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sino Agro Food	N/A	N/A	N/A
Archer Daniels Midland	1.43%	8.01%	3.40%

Earnings and Valuation

This table compares Sino Agro Food 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
Sino Agro Food	N/A	N/A	N/A	N/A	N/A
Archer Daniels Midland	$85.53 billion	0.38	$1.80 billion	$2.45	27.46

Archer Daniels Midland has higher revenue and earnings than Sino Agro Food.

Summary

Archer Daniels Midland beats Sino Agro Food on 8 of the 9 factors compared between the two stocks.

About Sino Agro Food

Sino Agro Food, Inc. is a holding company, which engages in the agriculture and aquaculture business. It operates through the following segments: Fishery Development; Hylocereus Undatus Plantation; Organic Fertilizer and Bread Grass; Cattle Farm Development; and Corporate and Others. Its products include fish, eels, prawns, beef, and mutton. The company was founded by Yip Kun Lee on October 1, 1974 and is headquartered in Guangzhou, 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.