Quick verdict: ADM vs HSY in 2026

Comparing ADM vs HSY stock in 2026, The Hershey Company (HSY) appears to have a stronger overall edge, leading in growth, margins, and implied upside. While Archer-Daniels-Midland Company (ADM) boasts a more attractive debt profile and free cash flow yield, HSY dominates in profitability and analysts’ target price upside. For investors evaluating `adm vs hsy stock comparison 2026`, HSY presents a compelling case for potential growth and significant intrinsic value according to discounted cash flow models. Not investment advice.

ADM vs HSY: key metrics side by side

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

ADM vs HSY valuation comparison

When considering the `adm vs hsy fundamentals and valuation`, both companies trade at relatively similar P/E multiples, with ADM at 34.73x and HSY slightly lower at 33.31x. This suggests the market prices their current earnings similarly despite their vastly different business models. However, the price-to-book (P/B) ratio reveals a significant divergence: ADM’s P/B of 1.65x is considerably lower than HSY’s 7.7x, indicating that ADM is trading much closer to its book value. This could position ADM as the cheaper option from a tangible asset perspective.

Delving deeper into `adm vs hsy valuation`, the Discounted Cash Flow (DCF) models present a stark contrast in implied upside. ADM’s current price of $77.56 implies a negative upside of -8.5% compared to its DCF estimate of $70.97, suggesting it might be overvalued by this metric. Conversely, HSY’s current price of $183.47 implies a massive upside of +123.5% to its DCF estimate of $410.12. This substantial DCF upside for HSY suggests a significant potential for intrinsic value growth, making it appear more “undervalued” based on future cash flow generation, despite its higher P/B ratio. Both companies have very similar market capitalizations, with ADM at $37.38 billion and HSY at $37.22 billion.

ADM vs HSY growth comparison

In the `adm vs hsy stock comparison 2026` regarding growth, The Hershey Company clearly demonstrates stronger momentum. HSY recorded a positive revenue growth of +4.4% year-over-year, showcasing consistent demand for its confectionery products. In contrast, Archer-Daniels-Midland Company experienced a revenue growth of -6.2% over the same period, indicating a contraction in its top-line performance, likely influenced by commodity market dynamics or specific business segment performance.

Beyond top-line revenue, profitability margins offer further insight into the quality of growth. HSY’s significantly higher net margin of 9.12% and EBITDA margin of 16.98% compared to ADM’s 1.34% net margin and 4.32% EBITDA margin suggest that HSY is not only growing but doing so with superior operational efficiency and pricing power. This robustness in margins underpins a more sustainable and high-quality growth trajectory for Hershey, providing a clearer advantage for investors prioritizing strong earnings expansion and efficiency.

ADM vs HSY profitability

Assessing the profitability aspect in this `adm vs hsy fundamentals and valuation` review, The Hershey Company (HSY) stands out with significantly higher margins. HSY boasts a net margin of 9.12% and an EBITDA margin of 16.98%, reflecting its strong brand equity, pricing power, and efficient operations within the consumer packaged goods sector. This indicates that a larger portion of its revenue translates into profit compared to its competitor.

On the other hand, Archer-Daniels-Midland Company (ADM), operating in the lower-margin agricultural processing industry, reports a net margin of 1.34% and an EBITDA margin of 4.32%. While these figures are typical for its sector, they highlight a vast difference in profitability profiles between the two companies. Interestingly, when looking at Free Cash Flow (FCF) yield, ADM leads with a robust 12.83% compared to HSY’s 5.83%. This suggests that despite lower margins, ADM is highly efficient at converting its earnings into available cash, generating substantial free cash flow relative to its market capitalization. Neither company reports a specific Return on Equity (ROE) figure in the provided data, preventing a direct comparison on that metric.

Analyst ratings: ADM vs HSY

Considering the `adm vs hsy analyst ratings and recommendations`, both companies currently hold a “Hold” consensus rating from analysts. However, a deeper look reveals some nuanced preferences. Of the 36 analysts covering ADM, 33.3% have a “Buy” rating. Their consensus price target for ADM is $74, which represents a negative upside of -4.6% from its current price of $77.56. This suggests that while a third of analysts see a buy opportunity, the overall consensus target implies a slight pullback or at best, limited near-term growth potential according to their models.

For The Hershey Company (HSY), 22.9% of the 35 analysts covering the stock recommend a “Buy”. While this percentage is lower than ADM’s, the consensus price target for HSY is $221.5, indicating a positive upside of +20.7% from its current price of $183.47. This suggests that despite a smaller proportion of “Buy” ratings, the analysts who do cover HSY see substantial potential for capital appreciation, positioning HSY with a more favorable price target outlook among the two.

Should I buy ADM or HSY stock in 2026?

When considering `should i buy adm or hsy stock 2026`, the choice largely depends on your investment strategy and priorities. For growth-oriented investors, The Hershey Company (HSY) appears to be the more compelling option. HSY has demonstrated positive revenue growth of +4.4% year-over-year, contrasting sharply with ADM’s -6.2%. Furthermore, HSY’s significantly higher net (9.12%) and EBITDA (16.98%) margins indicate a more robust and efficient business model capable of sustaining quality growth. The impressive +123.5% DCF upside also points to considerable intrinsic value potential for future appreciation.

For value investors, the picture is more complex. While ADM boasts a much lower P/B ratio of 1.65x compared to HSY’s 7.7x, suggesting it’s cheaper relative to its book assets, its DCF analysis indicates a -8.5% downside. HSY, despite its higher P/B, offers a substantial +123.5% DCF upside, implying it is significantly undervalued by this forward-looking metric. Both companies trade at comparable P/E ratios (ADM at 34.73x, HSY at 33.31x). Therefore, if “value” is defined by future potential and intrinsic worth, HSY seems to offer a more profound opportunity, despite its current market price.

For income-focused investors, neither ADM nor HSY stands out as a strong dividend play, as both offer a modest dividend yield of 0.03%. This metric is identical for both companies, suggesting that dividends are not a primary differentiator or a significant source of return for either stock. Therefore, investors prioritizing income might need to look elsewhere. Ultimately, the decision of `should i buy adm or hsy stock 2026` hinges on an investor’s tolerance for current valuation multiples versus future growth and intrinsic value potential. This is not investment advice.

More ADM and HSY comparisons

ADM full stock analysis · HSY full stock analysis · All stock comparisons

FAQ: ADM vs HSY