Cadiz (NASDAQ: CDZI) and Artesian Resources (NASDAQ:ARTNA) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This table compares Cadiz and Artesian Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
49.8% of Cadiz shares are held by institutional investors. Comparatively, 38.2% of Artesian Resources shares are held by institutional investors. 5.6% of Cadiz shares are held by company insiders. Comparatively, 20.6% of Artesian Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Cadiz has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Artesian Resources has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Cadiz and Artesian Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cadiz currently has a consensus target price of $18.00, suggesting a potential upside of 28.57%. Artesian Resources has a consensus target price of $41.00, suggesting a potential upside of 21.48%. Given Cadiz’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cadiz is more favorable than Artesian Resources.
Valuation & Earnings
This table compares Cadiz and Artesian Resources’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Artesian Resources||$79.09 million||3.92||$12.95 million||$1.41||23.94|
Artesian Resources has higher revenue and earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than Artesian Resources, indicating that it is currently the more affordable of the two stocks.
Artesian Resources pays an annual dividend of $0.94 per share and has a dividend yield of 2.8%. Cadiz does not pay a dividend. Artesian Resources pays out 66.7% of its earnings in the form of a dividend.
Artesian Resources beats Cadiz on 9 of the 16 factors compared between the two stocks.
Cadiz Company Profile
Cadiz Inc. is a land and water resource development company. As of December 31, 2016, the Company had 45,000 acres of land in three areas of eastern San Bernardino County, California. The Company’s primary business is to acquire and develop land with water resources for various uses, including groundwater supply, groundwater storage and agriculture. As of December 31, 2016, the Company was focused on the development of the Cadiz Valley Water Conservation, Recovery and Storage Project (Water Project or Project), which captures and conserves native groundwater being lost to evaporation from the aquifer system beneath its 34,000-acre property in the Cadiz and Fenner valleys of eastern San Bernardino County (the Cadiz/Fenner Property), and delivers it to water providers throughout Southern California. Its development activities include water resource and agricultural development at its San Bernardino County properties.
Artesian Resources Company Profile
Artesian Resources Corporation is a holding company. The Company’s subsidiaries offer water, wastewater and other services on the Delmarva Peninsula. The Company distributes and sells water, including water for public and private fire protection, to residential, commercial, industrial, municipal and utility customers in the states of Delaware, Maryland and Pennsylvania. The Company also provides wastewater services to customers in Delaware. In addition, the Company provides contract water and wastewater operations, and water, sewer and internal Service Line Protection Plans. As of December 31, 2016, the Company was the holding company of five regulated public utilities: Artesian Water Company, Inc., Artesian Water Pennsylvania, Inc., Artesian Water Maryland, Inc., Artesian Wastewater Management, Inc. and Artesian Wastewater Maryland, Inc., and three non-regulated subsidiaries: Artesian Utility Development, Inc., Artesian Development Corporation and Artesian Consulting Engineers, Inc.
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