Calavo Growers (NASDAQ: CVGW) and SiteOne Landscape Supply (NYSE:SITE) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitabiliy, valuation, risk, earnings, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Calavo Growers and SiteOne Landscape Supply, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calavo Growers 0 0 3 0 3.00
SiteOne Landscape Supply 0 2 1 0 2.33

Calavo Growers presently has a consensus price target of $78.67, indicating a potential upside of 14.93%. SiteOne Landscape Supply has a consensus price target of $47.00, indicating a potential downside of 11.87%. Given Calavo Growers’ stronger consensus rating and higher probable upside, equities analysts plainly believe Calavo Growers is more favorable than SiteOne Landscape Supply.

Risk & Volatility

Calavo Growers has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, SiteOne Landscape Supply has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.

Insider & Institutional Ownership

82.3% of Calavo Growers shares are owned by institutional investors. Comparatively, 87.3% of SiteOne Landscape Supply shares are owned by institutional investors. 9.9% of Calavo Growers shares are owned by insiders. Comparatively, 4.0% of SiteOne Landscape Supply shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

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.

Valuation and Earnings

This table compares Calavo Growers and SiteOne Landscape Supply’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Calavo Growers $1.01 billion 1.19 $75.09 million $2.30 29.76
SiteOne Landscape Supply $1.65 billion 1.28 $105.50 million ($3.22) -16.56

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.

Profitability

This table compares Calavo Growers and SiteOne Landscape Supply’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calavo Growers 3.99% 18.38% 11.73%
SiteOne Landscape Supply 1.55% 22.88% 3.95%

Summary

Calavo Growers beats SiteOne Landscape Supply on 8 of the 15 factors compared between the two stocks.

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.

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.

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