Limoneira (NASDAQ:LMNR) versus Dole (NYSE:DOLE) Head to Head Analysis

Dole (NYSE:DOLE) and Limoneira (NASDAQ:LMNR) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Dole and Limoneira”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dole	$9.17 billion	0.16	$51.32 million	$0.53	29.08
Limoneira	$159.72 million	1.64	-$15.98 million	($0.93)	-15.54

Dole has higher revenue and earnings than Limoneira. Limoneira is trading at a lower price-to-earnings ratio than Dole, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dole and Limoneira’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dole	0.56%	7.81%	2.55%
Limoneira	-10.01%	-8.79%	-5.30%

Dividends

Dole pays an annual dividend of $0.34 per share and has a dividend yield of 2.2%. Limoneira pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. Dole pays out 64.2% of its earnings in the form of a dividend. Limoneira pays out -32.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dole has increased its dividend for 1 consecutive years. Dole is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Dole and Limoneira, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dole	0	2	0	0	2.00
Limoneira	1	2	2	0	2.20

Dole presently has a consensus price target of $16.00, indicating a potential upside of 3.83%. Limoneira has a consensus price target of $18.50, indicating a potential upside of 28.03%. Given Limoneira’s stronger consensus rating and higher probable upside, analysts clearly believe Limoneira is more favorable than Dole.

Insider & Institutional Ownership

64.4% of Limoneira shares are owned by institutional investors. 41.8% of Dole shares are owned by company insiders. Comparatively, 9.2% of Limoneira shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Dole has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Limoneira has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Summary

Dole beats Limoneira on 11 of the 17 factors compared between the two stocks.

About Dole

Dole Food Company, Inc. (Dole) is a producer, marketer and distributor of fresh fruit and fresh vegetables. The Company is a producer of bananas and pineapples, and packaged fruit products, packaged salads and fresh-packed vegetables. The Company has three business segments: fresh fruit, fresh vegetables and packaged foods. The fresh fruit segment contains operating divisions that produce and market fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment produces and markets fresh-packed and value-added vegetables and salads to wholesale, retail and institutional customers, primarily in North America and Europe. The packaged foods segment contains several operating divisions that produce and market packaged foods, including fruit, juices, frozen fruit and healthy snack foods. In November 2013, Dole Food Company, Inc announced that an investor group acquired the remaining 60.43% interest in the Company.

About Limoneira

Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally. The company operates through three divisions: Agribusiness, Rental Operations, and Real Estate Development. It grows, processes, packs, markets, and sells lemons. The company also grows avocado, oranges, and specialty citrus and other crops, including Moro blood oranges, Cara Cara oranges, Valencia oranges, Minneola tangelos, Star Ruby grapefruit, pummelos, and wine grapes. It has approximately 3,500 acres of lemons planted primarily in Ventura, Tulare, San Luis Obispo, and San Bernardino Counties in California; and Jujuy, Argentina, as well in Yuma County, Arizona, and La Serena, Chile; 1,200 acres of avocados planted in Ventura County; 100 acres of oranges planted in Tulare County, California; and 400 acres of specialty citrus and other crops. In addition, the company rents residential housing units and commercial office buildings, as well as leases approximately 400 acres of its land to third-party agricultural tenants. Further, it is involved in the organic recycling operations; and development of land parcels, multi-family housing, and single-family homes. The company markets and sells its lemons directly to food service, wholesale, and retail customers; avocados, oranges, specialty citrus, and other crops to third-party packinghouses; and wine grapes to wine producers. Limoneira Company was founded in 1893 and is headquartered in Santa Paula, California.