S&W Seed (NASDAQ:SANW – Get Free Report) and Davis Commodities (NASDAQ:DTCK – Get Free Report) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Volatility and Risk
S&W Seed has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Davis Commodities has a beta of -0.81, indicating that its share price is 181% less volatile than the S&P 500.
Institutional & Insider Ownership
61.7% of S&W Seed shares are owned by institutional investors. Comparatively, 81.8% of Davis Commodities shares are owned by institutional investors. 11.4% of S&W Seed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| S&W Seed | 0 | 0 | 1 | 0 | 3.00 |
| Davis Commodities | 1 | 0 | 0 | 0 | 1.00 |
S&W Seed currently has a consensus target price of $25.00, suggesting a potential upside of 38,302.46%. Given S&W Seed’s stronger consensus rating and higher possible upside, equities analysts clearly believe S&W Seed is more favorable than Davis Commodities.
Valuation & Earnings
This table compares S&W Seed and Davis Commodities”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| S&W Seed | $54.99 million | 0.00 | -$30.03 million | ($14.24) | 0.00 |
| Davis Commodities | $160.53 million | 0.05 | -$3.53 million | N/A | N/A |
Davis Commodities has higher revenue and earnings than S&W Seed.
Profitability
This table compares S&W Seed and Davis Commodities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| S&W Seed | -85.38% | -50.81% | -17.71% |
| Davis Commodities | N/A | N/A | N/A |
Summary
Davis Commodities beats S&W Seed on 7 of the 12 factors compared between the two stocks.
About S&W Seed
S&W Seed Co. engages in the breeding, production, and sale of stevia and alfalfa seeds. The company was founded in 1980 and is headquartered in Longmont, CO.
About Davis Commodities
Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. Davis Commodities Limited was founded in 1999 and is headquartered in Singapore. The company operates as a subsidiary of Davis & KT Holdings Pte. Ltd.
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