Westrock Coffee (NASDAQ:WEST) & Archer Daniels Midland (NYSE:ADM) Head-To-Head Comparison

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

Volatility & Risk

Westrock Coffee has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Archer Daniels Midland has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

45.1% of Westrock Coffee shares are owned by institutional investors. Comparatively, 78.3% of Archer Daniels Midland shares are owned by institutional investors. 25.4% of Westrock Coffee shares are owned by company insiders. Comparatively, 0.6% of Archer Daniels Midland shares are owned by company 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 Westrock Coffee and Archer Daniels Midland’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westrock Coffee	-4.88%	-2,145.68%	-3.44%
Archer Daniels Midland	2.16%	9.21%	3.95%

Earnings & Valuation

This table compares Westrock Coffee 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
Westrock Coffee	$1.31 billion	0.63	-$90.44 million	($0.66)	-12.79
Archer Daniels Midland	$80.27 billion	0.50	$1.08 billion	$3.65	22.59

Archer Daniels Midland has higher revenue and earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than Archer Daniels Midland, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Westrock Coffee and Archer Daniels Midland, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westrock Coffee	1	1	3	0	2.40
Archer Daniels Midland	1	5	2	0	2.12

Westrock Coffee currently has a consensus target price of $10.00, suggesting a potential upside of 18.48%. Archer Daniels Midland has a consensus target price of $79.83, suggesting a potential downside of 3.19%. Given Westrock Coffee’s stronger consensus rating and higher possible upside, equities analysts clearly believe Westrock Coffee is more favorable than Archer Daniels Midland.

Summary

Archer Daniels Midland beats Westrock Coffee on 8 of the 14 factors compared between the two stocks.

About Westrock Coffee

Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.

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.