Quick verdict: ADM vs K in 2026

Overall, Kellanova (K) appears to hold a quantitative edge over Archer-Daniels-Midland Company (ADM) in this 2026 comparison, winning a majority of key metrics according to our scorecard. K emerges as the growth leader, showcasing a less severe revenue decline and significantly superior operational margins. While K generally presents a more attractive valuation based on its P/E ratio and discounted cash flow (DCF) upside, ADM offers a better Free Cash Flow yield, a much stronger debt profile, and a more favorable price-to-book ratio. Analysts lean slightly towards K in terms of buy ratings, though ADM’s consensus price target implies less near-term downside compared to K. Not investment advice.

ADM vs K: key metrics side by side

Full side-by-side comparison of ADM and K across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

ADM vs K valuation comparison

When considering ADM vs K valuation, Kellanova (K) generally presents a more attractive picture across several key metrics as of 2026-05-07. K’s trailing P/E ratio stands at 22.74x, which is significantly lower than ADM’s P/E of 34.73x. This suggests that investors are paying less for each dollar of K’s earnings compared to ADM. Furthermore, K’s discounted cash flow (DCF) valuation indicates a substantial potential upside of +14.4%, while ADM’s DCF suggests a downside of -8.5% from its current price, highlighting a more compelling fundamental value proposition for K.

However, the ADM vs K valuation narrative isn’t entirely one-sided. Archer-Daniels-Midland Company (ADM) boasts a much lower Price-to-Book (P/B) ratio of 1.65x, in stark contrast to K’s 6.91x. This indicates that ADM’s stock price is trading closer to its book value per share, potentially offering a safer entry point from an asset perspective. Additionally, ADM’s Free Cash Flow (FCF) yield is an impressive 12.83%, far surpassing K’s 2.06%. This implies ADM is generating a much higher amount of cash flow relative to its market capitalization, which can be a strong indicator of financial health and potential for shareholder returns.

ADM vs K growth comparison

In the ADM vs K growth comparison, Kellanova (K) demonstrates a relatively stronger position, particularly in a challenging market environment where both companies experienced revenue declines. K reported a revenue growth of -2.8% year-over-year, which, while negative, is considerably better than ADM’s -6.2% revenue growth. This indicates that K has shown greater resilience or better managed the headwinds impacting its top line, suggesting stronger momentum in its operations. This less severe decline could be indicative of a more stable demand for K’s consumer staples products compared to ADM’s broader agricultural and processing segments.

Beyond top-line revenue, Kellanova’s superior profitability margins also hint at more efficient operational growth. K’s net margin of 10.08% and EBITDA margin of 17.72% dwarf ADM’s 1.34% net margin and 4.32% EBITDA margin. These higher margins suggest that K is more effective at converting revenue into profit, which is a critical aspect of sustainable growth. While specific forward estimates are not provided, K’s current performance metrics paint a picture of a company with better underlying operational strength and potentially stronger earnings momentum moving forward, even if both are navigating a period of revenue contraction.

ADM vs K profitability

When analyzing ADM vs K profitability, Kellanova (K) clearly stands out with significantly higher profit margins. K’s net margin of 10.08% is dramatically superior to ADM’s 1.34%. This indicates that for every dollar of revenue, K retains a much larger percentage as net profit. Similarly, K’s EBITDA margin of 17.72% far surpasses ADM’s 4.32%, demonstrating K’s greater operational efficiency before accounting for depreciation, amortization, interest, and taxes. This strong margin performance suggests K has a more robust business model with better pricing power or cost control, which is a hallmark of strong profitability.

Despite K’s dominant margin profile, Archer-Daniels-Midland Company (ADM) makes a compelling case in terms of cash generation relative to its market cap, boasting a Free Cash Flow (FCF) yield of 12.83%, which is significantly higher than K’s 2.06%. This indicates that ADM is generating substantial cash from its operations, which can be used for debt reduction, dividends, share buybacks, or future investments. Both companies currently report “N/A%” for Return on Equity (ROE), which means this crucial profitability metric cannot be directly compared with the available data. However, ADM’s strong FCF yield highlights its ability to convert earnings into actual cash, a vital aspect for assessing a company’s financial health.

Analyst ratings: ADM vs K

In the realm of analyst sentiment for ADM vs K, both companies currently hold a consensus “Hold” rating, suggesting a generally neutral outlook from the broader analyst community. However, diving deeper into the individual ratings reveals some differences. Archer-Daniels-Midland Company (ADM) has 33.3% of analysts issuing a “Buy” rating out of a total of 36 analysts covering the stock. Their consensus price target for ADM is $74, which implies a -4.6% downside from its current price of $77.56. This indicates that, while some analysts are bullish, the average expectation is for a slight dip in the stock price from its current levels.

Conversely, Kellanova (K) has a slightly higher percentage of “Buy” ratings, with 38.2% of the 34 analysts covering the stock recommending it as a buy. Despite this higher conviction, K’s consensus price target of $74.03 implies a more significant downside of -11.3% from its current price of $83.44. This suggests that while more analysts may have a positive long-term view on K, their current price targets, on average, anticipate a larger correction in the near term compared to ADM. Therefore, while K garners a higher proportion of positive ratings, ADM’s stock price currently aligns more closely with its consensus target, indicating less projected downside from analyst expectations.

Should I buy ADM or K stock in 2026?

For growth-oriented investors asking “should I buy ADM or K stock in 2026?”, Kellanova (K) appears to have a more compelling narrative. Despite both companies facing revenue declines, K’s year-over-year revenue contraction of -2.8% is less severe than ADM’s -6.2%. More significantly, K boasts vastly superior net and EBITDA margins (10.08% net, 17.72% EBITDA) compared to ADM (1.34% net, 4.32% EBITDA). This indicates a more efficient business model and better underlying operational strength, which could translate into stronger earnings recovery and sustained profitability as market conditions improve.

Value investors evaluating ADM vs K fundamentals and valuation would find arguments for both. K presents a lower P/E ratio of 22.74x compared to ADM’s 34.73x, suggesting it’s cheaper relative to its earnings. Furthermore, K’s DCF model indicates a considerable upside of +14.4%, making it fundamentally undervalued at its current price according to this metric, unlike ADM’s -8.5% DCF downside. However, ADM offers a significantly lower Price-to-Book ratio of 1.65x (vs. K’s 6.91x) and a much higher Free Cash Flow yield of 12.83% (vs. K’s 2.06%). This makes ADM an attractive option for those prioritizing asset-backed value and strong cash generation.

For income-focused investors, the choice between ADM or K stock in 2026 is effectively a tie, as both companies currently offer an identical dividend yield of 0.03%. Neither ADM nor K stands out as a high-yield dividend stock based on the provided data, suggesting that capital appreciation or total return, rather than income, would be the primary driver of investment returns. Ultimately, the decision depends on an investor’s specific risk tolerance and financial goals, weighing K’s better margins and DCF upside against ADM’s superior P/B and FCF yield. This is not investment advice; always conduct your own thorough research.

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FAQ: ADM vs K