The New York Times (NYSE:NYT) and Archer-Daniels-Midland (NYSE:ADM) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.
Valuation & Earnings
This table compares The New York Times and Archer-Daniels-Midland's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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The New York Times | $1.81 billion | 4.60 | $139.97 million | $0.92 | 54.20 |
Archer-Daniels-Midland | $64.66 billion | 0.45 | $1.38 billion | $3.24 | 16.30 |
Archer-Daniels-Midland has higher revenue and earnings than The New York Times. Archer-Daniels-Midland is trading at a lower price-to-earnings ratio than The New York Times, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
The New York Times has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Archer-Daniels-Midland has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for The New York Times and Archer-Daniels-Midland, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The New York Times | 1 | 0 | 5 | 0 | 2.67 |
Archer-Daniels-Midland | 0 | 3 | 8 | 0 | 2.73 |
The New York Times currently has a consensus target price of $45.00, suggesting a potential downside of 9.75%. Archer-Daniels-Midland has a consensus target price of $53.0909, suggesting a potential upside of 0.51%. Given Archer-Daniels-Midland's stronger consensus rating and higher probable upside, analysts clearly believe Archer-Daniels-Midland is more favorable than The New York Times.
Profitability
This table compares The New York Times and Archer-Daniels-Midland's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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The New York Times | 8.88% | 13.73% | 8.02% |
Archer-Daniels-Midland | 2.53% | 11.10% | 4.70% |
Insider and Institutional Ownership
93.4% of The New York Times shares are held by institutional investors. Comparatively, 77.9% of Archer-Daniels-Midland shares are held by institutional investors. 2.6% of The New York Times shares are held by insiders. Comparatively, 1.3% of Archer-Daniels-Midland shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
The New York Times pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Archer-Daniels-Midland pays an annual dividend of $1.44 per share and has a dividend yield of 2.7%. The New York Times pays out 26.1% of its earnings in the form of a dividend. Archer-Daniels-Midland pays out 44.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The New York Times has raised its dividend for 2 consecutive years and Archer-Daniels-Midland has raised its dividend for 45 consecutive years. Archer-Daniels-Midland is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Archer-Daniels-Midland beats The New York Times on 9 of the 17 factors compared between the two stocks.