Head to Head Analysis: Davis Commodities (NASDAQ:DTCK) versus Archer Daniels Midland (NYSE:ADM)

Archer Daniels Midland (NYSE:ADM) and Davis Commodities (NASDAQ:DTCK) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Earnings & Valuation

This table compares Archer Daniels Midland and Davis Commodities”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Archer Daniels Midland	$80.27 billion	0.43	$1.08 billion	$2.22	32.30
Davis Commodities	$160.53 million	0.01	-$3.53 million	N/A	N/A

Archer Daniels Midland has higher revenue and earnings than Davis Commodities.

Profitability

This table compares Archer Daniels Midland and Davis Commodities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Archer Daniels Midland	1.34%	7.39%	3.17%
Davis Commodities	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Archer Daniels Midland and Davis Commodities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Archer Daniels Midland	3	5	1	0	1.78
Davis Commodities	1	0	0	0	1.00

Archer Daniels Midland currently has a consensus price target of $58.57, indicating a potential downside of 18.31%. Given Archer Daniels Midland’s stronger consensus rating and higher probable upside, analysts clearly believe Archer Daniels Midland is more favorable than Davis Commodities.

Institutional and Insider Ownership

78.3% of Archer Daniels Midland shares are owned by institutional investors. Comparatively, 81.8% of Davis Commodities shares are owned by institutional investors. 0.7% of Archer Daniels Midland shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Archer Daniels Midland has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Davis Commodities has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500.

Summary

Archer Daniels Midland beats Davis Commodities on 11 of the 12 factors compared between the two stocks.

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.

About Davis Commodities

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. Davis Commodities Limited was founded in 1999 and is headquartered in Singapore. The company operates as a subsidiary of Davis & KT Holdings Pte. Ltd.