Lavoro (NASDAQ:LVRO – Get Free Report) and Cadiz (NASDAQ:CDZI – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
Risk & Volatility
Lavoro has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Lavoro and Cadiz, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lavoro | 3 | 1 | 0 | 0 | 1.25 |
| Cadiz | 1 | 1 | 1 | 0 | 2.00 |
Valuation & Earnings
This table compares Lavoro and Cadiz”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lavoro | $6.52 billion | 0.02 | -$466.28 million | ($1.57) | -0.70 |
| Cadiz | $9.61 million | 57.17 | -$31.14 million | ($0.49) | -13.49 |
Cadiz has lower revenue, but higher earnings than Lavoro. Cadiz is trading at a lower price-to-earnings ratio than Lavoro, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
2.5% of Lavoro shares are held by institutional investors. Comparatively, 79.8% of Cadiz shares are held by institutional investors. 1.7% of Cadiz shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Lavoro and Cadiz’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lavoro | N/A | N/A | N/A |
| Cadiz | -206.65% | -93.48% | -24.26% |
Summary
Cadiz beats Lavoro on 8 of the 14 factors compared between the two stocks.
About Lavoro
Lavoro Limited operates as an agricultural inputs retailer. The company operates through three segments: Brazil Cluster, LATAM Cluster, and Crop Care Cluster. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. The company also produces specialty fertilizers, crop protection products, and biological crop inputs. It operates in Brazil, Colombia, and Uruguay. The company sells its products through its physical stores and digital channel. Lavoro Limited was founded in 2017 and is headquartered in São Paulo, Brazil.
About Cadiz
Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The company operates through Land and Water Resources; and Water Filtration Technology segments. It offers water supply, water storage, water conveyance, and water filtration services. In addition, the company is involved in the cultivation of grain crops and alfalfa, as well as provides water filtration solutions for impaired or contaminated groundwater sources. It serves public water systems, government agencies, and other clients. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.
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