ADM(US:ADM) The Motley Foolยท2024-09-18 13:15Core Viewpoint - Coca-Cola's stock has risen over 20% in the past year, making it potentially less attractive for value-focused investors, while PepsiCo and Archer-Daniels-Midland present more appealing alternatives for income investors [1][8]. Group 1: Coca-Cola - Coca-Cola is a well-established brand with a strong marketing and distribution network, recognized as a Dividend King with over 60 years of annual dividend increases [2]. - The company has experienced annualized revenue growth of approximately 7.5% and earnings growth of over 10% in the past five years, justifying its recent stock price increase [3]. - Current valuations show Coca-Cola's price-to-sales (P/S) and price-to-earnings (P/E) ratios are slightly above their five-year averages, indicating it may be considered expensive for value investors [3]. Group 2: PepsiCo - PepsiCo is a strong competitor to Coca-Cola, holding the number one position in salty snacks and diversifying into packaged foods, which may appeal to investors seeking business diversification [4]. - Despite being a strong company, PepsiCo's earnings have declined over the past five years, leading to a flat stock performance over the last year, creating a potential opportunity for long-term income investors [5]. - PepsiCo offers a dividend yield of 3%, higher than Coca-Cola's 2.7%, and its P/S and P/E ratios are below their five-year averages, suggesting it is currently undervalued [5]. Group 3: Archer-Daniels-Midland - Archer-Daniels-Midland has a dividend yield of 3.3%, just shy of being a Dividend King with 49 consecutive annual dividend increases [6]. - The company operates differently from Coca-Cola and PepsiCo, serving as a supplier of commodities like oilseeds, corn, and wheat, which can lead to revenue and earnings volatility [6][7]. - The stock has declined around 25% over the past year, but its P/S and P/E ratios are below their five-year averages, indicating potential value for long-term dividend investors [7].