FMC (NYSE:FMC – Get Free Report) and Lavoro (NASDAQ:LVRO – Get Free Report) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Profitability
This table compares FMC and Lavoro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FMC | -72.93% | 10.53% | 2.95% |
| Lavoro | N/A | N/A | N/A |
Risk & Volatility
FMC has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Lavoro has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FMC | 3 | 9 | 2 | 0 | 1.93 |
| Lavoro | 1 | 1 | 0 | 0 | 1.50 |
FMC currently has a consensus target price of $20.46, indicating a potential upside of 68.02%. Lavoro has a consensus target price of $2.25, indicating a potential upside of 640.13%. Given Lavoro’s higher possible upside, analysts plainly believe Lavoro is more favorable than FMC.
Valuation and Earnings
This table compares FMC and Lavoro”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FMC | $3.47 billion | 0.44 | -$2.24 billion | ($19.98) | -0.61 |
| Lavoro | $6.52 billion | 0.01 | -$466.28 million | ($1.57) | -0.19 |
Lavoro has higher revenue and earnings than FMC. FMC 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
91.9% of FMC shares are held by institutional investors. Comparatively, 2.5% of Lavoro shares are held by institutional investors. 0.8% of FMC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
About FMC
FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.
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.
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