S&W Seed Company (SANW) versus The Andersons (ANDE) Critical Analysis
S&W Seed Company (NASDAQ: SANW) and The Andersons (NASDAQ:ANDE) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, institutional ownership, earnings and risk.
This table compares S&W Seed Company and The Andersons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|S&W Seed Company||-0.46%||1.53%||0.76%|
Volatility and Risk
S&W Seed Company has a beta of -1.04, suggesting that its share price is 204% less volatile than the S&P 500. Comparatively, The Andersons has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Valuation & Earnings
This table compares S&W Seed Company and The Andersons’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|S&W Seed Company||$92.12 million||0.82||$6.13 million||($0.14)||-30.00|
|The Andersons||$3.89 billion||0.25||$111.07 million||$0.82||41.10|
The Andersons has higher revenue and earnings than S&W Seed Company. S&W Seed Company is trading at a lower price-to-earnings ratio than The Andersons, indicating that it is currently the more affordable of the two stocks.
The Andersons pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. S&W Seed Company does not pay a dividend. The Andersons pays out 78.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. S&W Seed Company has raised its dividend for 2 consecutive years.
Insider and Institutional Ownership
63.5% of S&W Seed Company shares are owned by institutional investors. Comparatively, 74.2% of The Andersons shares are owned by institutional investors. 12.1% of S&W Seed Company shares are owned by company insiders. Comparatively, 6.3% of The Andersons shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for S&W Seed Company and The Andersons, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|S&W Seed Company||0||1||3||0||2.75|
S&W Seed Company presently has a consensus price target of $6.00, indicating a potential upside of 42.86%. The Andersons has a consensus price target of $40.50, indicating a potential upside of 20.18%. Given S&W Seed Company’s stronger consensus rating and higher probable upside, equities analysts plainly believe S&W Seed Company is more favorable than The Andersons.
The Andersons beats S&W Seed Company on 9 of the 17 factors compared between the two stocks.
S&W Seed Company Company Profile
S&W Seed Company (S&W) is a global agricultural company. The Company focuses on the breeding, production and sale of alfalfa seed. In addition to its primary activities in alfalfa seed, it also offers hybrid sorghum and sunflower seed germplasm. As of June 30, 2016, the Company sold its alfalfa seed varieties in more than 30 countries across the globe. It also owns and operates seed-cleaning and processing facilities in Five Points, California and Nampa, Idaho and a seed processing facility in Keith, South Australia. Its commercial product line-up includes alfalfa seed varieties that span from Fall Dormancy (FD) 3 to FD 10. Its non-dormant varieties include SW 10, SW 9720, SW 9215, SW 9628 and SW 8421S. Its FD 3, FD 4 and FD 5 S&W varieties are adapted to the winter-hardy intermountain west and the northern half of the United States and Canada. Its FD 3, FD 4 and FD 5 S&W varieties include Rhino, SW4328 and SW5909.
The Andersons Company Profile
The Andersons, Inc. is a diversified company. The Company conducts business across North America in the grain, ethanol, plant nutrient and rail sectors. The Company also produces turf and cob products, and has a consumer retailing presence. The Company operates through segments, including Grain, Ethanol, Rail, Plant Nutrient and Retail. Its Grain business operates grain elevators in various states in the United States Corn Belt. Its Ethanol Group has ownership interests in over four Limited Liability Companies (the ethanol LLCs or LLCs). Its Plant Nutrient Group is a manufacturer, distributor and retailer of agricultural and related plant nutrients, corncob-based products, and pelleted lime and gypsum products in the United States Corn Belt, Florida and Puerto Rico. Its Rail Group leases, repairs and sells various types of railcars, locomotives and barges. Its Retail Group includes retail stores operated as The Andersons, which are located in the Columbus and Toledo, Ohio markets.
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