Comparing Calavo Growers (NASDAQ:CVGW) & SiteOne Landscape Supply (SITE)
SiteOne Landscape Supply (NYSE: SITE) and Calavo Growers (NASDAQ:CVGW) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their profitabiliy, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Calavo Growers pays an annual dividend of $0.90 per share and has a dividend yield of 1.3%. SiteOne Landscape Supply does not pay a dividend. Calavo Growers pays out 39.1% of its earnings in the form of a dividend.
Insider and Institutional Ownership
87.3% of SiteOne Landscape Supply shares are held by institutional investors. Comparatively, 82.3% of Calavo Growers shares are held by institutional investors. 4.0% of SiteOne Landscape Supply shares are held by insiders. Comparatively, 9.9% of Calavo Growers shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares SiteOne Landscape Supply and Calavo Growers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SiteOne Landscape Supply||1.55%||22.88%||3.95%|
This is a summary of current ratings and target prices for SiteOne Landscape Supply and Calavo Growers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SiteOne Landscape Supply||0||2||1||0||2.33|
SiteOne Landscape Supply currently has a consensus target price of $47.00, suggesting a potential downside of 12.15%. Calavo Growers has a consensus target price of $78.67, suggesting a potential upside of 16.20%. Given Calavo Growers’ stronger consensus rating and higher possible upside, analysts plainly believe Calavo Growers is more favorable than SiteOne Landscape Supply.
Volatility and Risk
SiteOne Landscape Supply has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, Calavo Growers has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.
Valuation & Earnings
This table compares SiteOne Landscape Supply and Calavo Growers’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SiteOne Landscape Supply||$1.65 billion||1.29||$105.50 million||($3.22)||-16.61|
|Calavo Growers||$1.01 billion||1.18||$75.09 million||$2.30||29.43|
SiteOne Landscape Supply has higher revenue and earnings than Calavo Growers. SiteOne Landscape Supply is trading at a lower price-to-earnings ratio than Calavo Growers, indicating that it is currently the more affordable of the two stocks.
Calavo Growers beats SiteOne Landscape Supply on 8 of the 15 factors compared between the two stocks.
SiteOne Landscape Supply Company Profile
SiteOne Landscape Supply, Inc. is a national wholesale distributor of landscape supplies in the United States and Canada. The Company is a supplier of irrigation, landscape lighting, hardscapes, lawn care supplies, nursery stock, and landscape accessories to green industry professionals. As of October 2, 2016, the Company had over 450 stores. The Company offers a selection of fertilizer and control products, such as herbicides, irrigation supplies, landscape accessories, nursery goods, hardscapes, including pavers, natural stones and blocks, and outdoor lighting products. The Company’s customers are primarily residential and commercial landscape professionals specializing in the designing, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces. The Company offers various products, such as spreader settings, LESCO equipment specification sheets, golf course supplies, seed: golf and greentech specification binder.
Calavo Growers Company Profile
Calavo Growers, Inc. operates in the avocado industry. The Company provides value-added fresh food. The Company distributes its products both domestically and internationally and internationally. It operates in three business segments: Fresh products, Calavo Foods and Renaissance Food Group, LLC (RFG). The Company is engaged in marketing and distributing avocados, prepared avocados and other perishable foods, which allows it to deliver an array of fresh and prepared food products to food distributors, produce wholesalers, supermarkets, convenience stores and restaurants on a worldwide basis. The Company procures avocados principally from California and Mexico. Through its various operating facilities, the Company sorts, packs, and/or ripens avocados, tomatoes and/or Hawaiian grown papayas; processes and packages fresh cut fruit and vegetables, salads, wraps, sandwiches, fresh snacking products and a range of behind-the-glass deli items, and produces and packages guacamole and salsa.
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