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VOX, ZAYO, S, SHEN: Large Outflows Detected at ETF
Tuesday, November 7, 10:48 AM ET, by Market News Video Staff

Symbols mentioned in this story: VOX, ZAYO, S, SHEN Exchange traded funds (ETFs) trade just ...

That's Odd: Bearish S Analysts See 17.62% Upside
Wednesday, November 8, 9:12 AM ET, by Market News Video Staff

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

Stryker Becomes #129 Most Shorted S&P 500 Component, Replacing Archer Daniels Midland
Friday, November 10, 3:08 PM ET, by Market News Video Staff

The most recent short interest data has been released for the 10/31/2017 settlement date, and ...

Ex-Dividend Reminder: Archer Daniels Midland, Wynn Resorts and Thomson Reuters
Monday, November 13, 9:57 AM ET, by Market News Video Staff

On 11/15/17, Archer Daniels Midland Co. (ADM), Wynn Resorts Ltd (WYNN), and Thomson Reuters Corp ...

Notable Tuesday Option Activity: ADM, AAL, C
Tuesday, November 14, 1:29 PM ET, by Market News Video Staff

Looking at options trading activity among components of the S&P 500 index, there is noteworthy ...

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Sprint Larger Than S&P 500 Component Archer Daniels Midland

By Market News Video Staff, Friday, January 12, 4:43 PM ET
Play Video: The Importance Of Market Cap

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In the latest look at stocks ordered by largest market capitalization, Russell 3000 component Sprint Corp (NYSE:S) was identified as having a larger market cap than the smaller end of the S&P 500, for example Archer Daniels Midland Co. (NYSE:ADM), according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating

Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Sprint Corp (NYSE:S), the market cap is now $22.76B, versus Archer Daniels Midland Co. (NYSE:ADM) at $22.65B.

Below is a three month price history chart comparing the stock performance of S vs. ADM (Note that we have found 1 split in the S split history):

S,ADM Relative Performance Chart

Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which indices will include the stock, and which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). And ETFs that directly follow an index like the S&P 500 will only own the underlying component of that index, selling companies that lose their status as an S&P 500 company, and buying companies when they are added to the index. So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at find value to putting together these looks at comparative market capitalization daily.

According to the ETF Finder at ETF Channel, S and ADM collectively make up 3.04% of the PowerShares Russell Top 200 Pure Value Portfolio ETF (PXLV) which is higher by about 0.4% on the day Friday.

See what other ETFs contain both S and ADM
See what other stocks are held by PXLV

At the closing bell, S is trading flat, while ADM is off about 0.1% on the day Friday.

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