Why Archer-Daniels-Midland is better than Bunge Limited

The hunt for value is on, and you should watch both Bunge Limited (NYSE:BG) and Archer-Daniels-Midland Company (NYSE:ADM). The two agricultural stocks are rated buy and strong buy respectively. This analysis is for the investor who would want to pick only one of the two stocks. While both are attractive value stocks, there are some differences from a fundamental perspective.

Bunge closed the week at $117.94. This valuation coincides with a PEG ratio of 1.66 and a PE of 11.13. The company has a dividend yield of 1.72%. With an A rating on momentum, it is important to explore how market risk would affect the stock. The beta value of 0.54 means that it carries less risk than the market index. 

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Focusing on Archer-Daniels-Midland, the week’s closing price was $92.18. The company is both a growth stock and a momentum stock. At the price, the PEG ratio is 3.23, with the forward PE being 17.84. The dividend yield is 1.67%. All this, with a beta of 0.79.

Bunge and Archer-Daniels-Midland technical analysis

An assessment of technical indicators shows Bunge trading at an RSI of 65. On the other hand, Archer-Daniels-Midland is trading at an RSI of 71. On returns, Bunge Limited brought home 122% since 2019, while Archer-Daniels-Midland raked in 126%. The returns can not be considered significantly different. The choice between the two largely depends on the fundamentals.

Summary

The two companies are highly attractive for investment, and both offer similar returns. Archer-Daniels-Midland is better because of its high growth potential and more attention from investors.

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