Cadiz (NASDAQ:CDZI – Get Free Report) and Limoneira (NASDAQ:LMNR – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Cadiz and Limoneira, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cadiz | 1 | 1 | 1 | 0 | 2.00 |
| Limoneira | 1 | 2 | 2 | 0 | 2.20 |
Cadiz presently has a consensus target price of $10.00, indicating a potential upside of 141.55%. Limoneira has a consensus target price of $18.50, indicating a potential upside of 56.38%. Given Cadiz’s higher probable upside, equities research analysts clearly believe Cadiz is more favorable than Limoneira.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadiz | $16.31 million | 21.34 | -$34.15 million | ($0.46) | -9.00 |
| Limoneira | $159.72 million | 1.34 | -$15.98 million | ($1.28) | -9.24 |
Limoneira has higher revenue and earnings than Cadiz. Limoneira is trading at a lower price-to-earnings ratio than Cadiz, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Cadiz has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, Limoneira has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.
Institutional and Insider Ownership
79.8% of Cadiz shares are held by institutional investors. Comparatively, 64.4% of Limoneira shares are held by institutional investors. 1.7% of Cadiz shares are held by insiders. Comparatively, 9.2% of Limoneira shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Cadiz and Limoneira’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cadiz | -221.43% | -129.97% | -24.08% |
| Limoneira | -15.55% | -12.19% | -7.15% |
Summary
Limoneira beats Cadiz on 8 of the 14 factors compared between the two stocks.
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.
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.
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