ADM vs ANDE: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
ADM is the larger of the two ($39.81B market cap): the incumbent the market prices for continued execution (14.57x forward earnings, beta 0.63). ANDE is the smaller challenger ($2.21B), cheaper on forward earnings (10.15x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
ADM vs ANDE: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ADM | ANDE | What it tells you |
|---|---|---|---|
| Market cap | $39.81B | $2.21B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 14.57 | 10.15 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 22.63 | 12.53 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.63 | 0.65 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 81% of range | 54% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.69 | 1.66 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: ANDE is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how ADM and ANDE affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ADM and ANDE share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ADM and ANDE exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Archer-Daniels-Midland (ADM) do?
Archer-Daniels-Midland is a global agribusiness that sources, transports, stores, processes, and merchandises agricultural commodities and ingredients. It runs three reportable segments: Ag Services and Oilseeds (the largest, spanning grain origination, oilseed crushing, and global trading), Carbohydrate Solutions (corn wet milling, sweeteners, starches, and ethanol), and Nutrition (human and animal ingredients, flavors, and specialty products). Along with Bunge, Cargill, and Louis Dreyfus it is one of the "ABCD" firms that move a large share of the world's grain and oilseeds, making it a core piece of the food and biofuel supply chain.
What does The Andersons (ANDE) do?
The Andersons, Inc. is a diversified agribusiness founded in Ohio that operates across two main reporting segments. Its Agribusiness segment handles commodity merchandising, terminal grain elevator operations, and the manufacturing and distribution of plant nutrient and specialty agricultural products, while its Renewables segment produces, buys, and sells ethanol and co-products through owned and partly owned plants. The business is asset heavy and volume driven, earning thin margins on very large revenue as it moves grain and inputs through elevators, rail, and logistics networks across North America.
ADM vs ANDE: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ADM drivers: Crush and ethanol margin recovery; US biofuel and renewable-diesel policy.
- ANDE drivers: Renewables and biofuels policy tailwind; Grain merchandising and trade franchise.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: ADM is highly cyclical and its profits depend on crush margins, ethanol spreads, and crop supply that it cannot control, so earnings can drop sharply in a bad year as 2025 showed. For ANDE, the Andersons operates in highly cyclical agricultural and energy markets, so earnings can swing sharply with crop size, commodity prices, and merchandising spreads.
ADM or ANDE: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ADM if you believe its drivers more; ANDE if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ADM and ANDE guides.
ADM vs ANDE: the full fundamentals
ADM. At $82.94, ADM trades near 23x trailing GAAP earnings, which still include the weak 2025 quarters, and about 15x forward estimates that assume 2026's recovered margins persist. The roughly 2.5% dividend yield and 53-year raise streak remain a large part of the total-return case. The third-quarter report on November 3, 2026 (consensus EPS about $1.59 on $23.5 billion of revenue) will show whether the crush rebound carried through the summer.
ANDE. Two record quarters have reshaped the valuation: trailing EPS is about $5.18, so a stock near $66 trades around 12.7x trailing and about 10x forward earnings, far below the roughly 23x of mid 2026. At about 0.2x sales the market still prices ANDE as a thin-margin merchandiser, and the question for the November 3 report (consensus about $1.11 EPS on $2.9 billion revenue) is how much of the renewables strength persists.
Headline figures (approximate, October 2026): ADM shows revenue (ttm) ~$82B (+7% YoY latest qtr), net income (ttm) ~$1.8B (2.2% margin), q2 2026 adjusted eps ~$1.84 (vs ~$0.93 a year earlier), 2026 adjusted eps guidance ~$5.15 to $5.60; ANDE shows revenue (ttm) ~$10.9B (latest quarter ~-1% YoY), net income (ttm) ~$177M (profit margin ~1.6%), q2 2026 adjusted eps ~$2.15 vs ~$1.48 expected, p/e (trailing / forward) ~12.7x / ~10.3x.
The bottom line: ADM vs ANDE
ADM and ANDE are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ADM and ANDE exposure against your real portfolio. It is not an investment adviser.
Wondering how ADM or ANDE fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Archer-Daniels-Midland with AI
Connect the broker you already use and ask Walnut's AI how ADM fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ADM and ANDE?
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Archer-Daniels-Midland is a global agribusiness that sources, transports, stores, processes, and merchandises agricultural commodities and ingredients. The Andersons, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ADM or ANDE the better stock?
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Neither is universally better. ADM is the larger incumbent; ANDE is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ADM or ANDE?
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On forward P/E (as of October 2026), ADM trades at 14.57x and ANDE at 10.15x, so ANDE is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ADM and ANDE?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ADM vs ANDE?
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ADM: ADM is highly cyclical and its profits depend on crush margins, ethanol spreads, and crop supply that it cannot control, so earnings can drop sharply in a bad year as 2025 showed. The 2026 recovery raises the bar: analysts expect 2027 EPS of about $5.67, only slightly above 2026, and the stock trades above the average analyst price target of roughly $80, so any fading of margins could hit the shares. Recent commentary points to weakness in sweeteners and a 22% earnings drop at Wilmar, an Asian agribusiness in which ADM holds a stake. The company settled an SEC accounting matter tied to how intersegment sales inflated Nutrition results in 2021 and 2022, paying a $40 million civil penalty (with the DOJ closing its criminal probe without charges), which has left a governance and credibility overhang. Trade policy, tariffs, and shifting global grain flows can disrupt origination and trading economics. Finally, a low-margin commodity business model means thin percentage margins on very large revenue (about a 2% net margin), so small swings in input costs or realized prices have outsized effects on the bottom line. ANDE: The Andersons operates in highly cyclical agricultural and energy markets, so earnings can swing sharply with crop size, commodity prices, and merchandising spreads. Weather, trade policy, and export demand can materially change grain volumes and margins in a single season. Renewables profitability depends heavily on ethanol economics and on government biofuels credits such as 45Z, which are subject to political and regulatory change; with renewables now carrying so much of the earnings growth, a policy change would hit harder than it once did. Consensus for the third quarter is about $1.11 of EPS and for 2027 implies only about 4% growth, so the record pace of early 2026 is not expected to repeat indefinitely. The business is asset heavy and low margin, so net income is a thin slice of very large revenue and can be volatile quarter to quarter, and trailing free cash flow was negative (about -$109 million). Fertilizer price volatility and input costs add further uncertainty to the nutrient business.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ADM or ANDE; figures are approximate and dated (as of October 2026). Verify current data before investing.