Critical Survey: Archer Daniels Midland (NYSE:ADM) versus Scheid Vineyards (OTCMKTS:SVIN)

Scheid Vineyards (OTCMKTS:SVIN) 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 profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Earnings and Valuation

This table compares Scheid Vineyards 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
Scheid Vineyards	$58.41 million	0.03	-$17.80 million	($27.83)	-0.06
Archer Daniels Midland	$82.78 billion	0.33	$1.80 billion	$2.45	23.20

Archer Daniels Midland has higher revenue and earnings than Scheid Vineyards. Scheid Vineyards 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.

Profitability

This table compares Scheid Vineyards and Archer Daniels Midland’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scheid Vineyards	-45.56%	N/A	N/A
Archer Daniels Midland	1.33%	8.43%	3.55%

Volatility & Risk

Scheid Vineyards has a beta of -0.36, indicating that its share price is 136% less volatile than the S&P 500. Comparatively, Archer Daniels Midland has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

78.3% of Archer Daniels Midland shares are owned by institutional investors. 9.6% of Scheid Vineyards shares are owned by insiders. Comparatively, 1.2% of Archer Daniels Midland shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Scheid Vineyards and Archer Daniels Midland, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scheid Vineyards	0	0	0	0	0.00
Archer Daniels Midland	2	6	1	0	1.89

Archer Daniels Midland has a consensus target price of $55.25, indicating a potential downside of 2.79%. Given Archer Daniels Midland’s stronger consensus rating and higher probable upside, analysts clearly believe Archer Daniels Midland is more favorable than Scheid Vineyards.

Summary

Archer Daniels Midland beats Scheid Vineyards on 13 of the 14 factors compared between the two stocks.

About Scheid Vineyards

Scheid Vineyards Inc. manufactures and sells wine in the United States. The company operates vineyards in Monterey and San Benito counties of California. It offers red, white, reserve, dessert wines, as well as accessories, such as wine glass. The company was incorporated in 1971 and is based in Salinas, California.

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.