Archer Daniels Midland Company (ADM) vs Vital Farms, Inc. (VITL)

Archer Daniels Midland Company and Vital Farms, Inc. are both Farm Products companies. Archer Daniels Midland Company is the larger, with a market value of $39.2B against $460.2M — 85.2× the size. Vital Farms, Inc. has negative trailing earnings, so its P/E is not meaningful; Archer Daniels Midland Company trades at 22.2×. Vital Farms, Inc. grew revenue faster over the last twelve months: 16.4% against −0.82%. Archer Daniels Midland Company has the higher net margin (2.16% vs 0.02%) and the higher return on invested capital (5.47% vs 0.07%). Across the 20 metrics below, Archer Daniels Midland Company leads on 12 and Vital Farms, Inc. on 8.

Valuation

Metric ADM VITL Farm Products median
P/E 22.22 n/m 21.24
P/S 0.48 0.56 0.50
P/B 1.67 1.51 1.20
Price to free cash flow 23.25 n/m 13.98
EV/EBITDA 12.14 28.15 8.14
EV/Sales 0.45 0.58 0.58
Earnings yield 4.50% (0.20%) 0.56%
Free cash flow yield 4.30% (29.23%) (3.01%)

Profitability

Metric ADM VITL Farm Products median
Gross margin 6.87% 28.12% 6.87%
Operating margin 2.30% 0.04% 0.11%
Net margin 2.16% 0.02% 0.63%
Free cash flow margin 2.06% (16.31%) 0.00%
Return on equity 7.69% 0.05% 1.52%
Return on assets 3.35% 0.03% 0.02%
Return on invested capital 5.47% 0.07% 0.00%

Growth

Metric ADM VITL Farm Products median
Revenue growth (TTM) (0.82%) 16.37% 7.27%
EPS growth (last fiscal year) (38.90%) 22.03% —
Revenue growth, 5-year CAGR 4.52% 28.80% 8.40%
Net income growth, 5-year CAGR (9.46%) 49.76% 0.00%

Health

Metric ADM VITL Farm Products median
Debt to equity 0.32 0.11 0.24
Current ratio 1.39 1.10 1.43
Net debt to EBITDA (0.72) (1.06) (0.04)

Dividend

Metric ADM VITL Farm Products median
Dividend yield 3.39% — 3.06%
Payout ratio 0.23 0.00 0.17

Size

Metric ADM VITL Farm Products median
Market cap 39.23b 460.23m 293.80m

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