Financial Contrast: AppHarvest (NASDAQ:APPH) versus Local Bounti (NYSE:LOCL)

AppHarvest (NASDAQ:APPHGet Rating) and Local Bounti (NYSE:LOCLGet Rating) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares AppHarvest and Local Bounti’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AppHarvest $9.05 million 29.90 -$166.19 million ($1.67) -1.59
Local Bounti $640,000.00 491.14 -$56.09 million N/A N/A

Local Bounti has lower revenue, but higher earnings than AppHarvest.

Risk & Volatility

AppHarvest has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Local Bounti has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares AppHarvest and Local Bounti’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AppHarvest -1,412.56% -29.33% -21.44%
Local Bounti N/A -64.25% -35.23%

Insider & Institutional Ownership

45.6% of AppHarvest shares are owned by institutional investors. Comparatively, 67.7% of Local Bounti shares are owned by institutional investors. 20.0% of AppHarvest shares are owned by insiders. Comparatively, 41.5% of Local Bounti shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for AppHarvest and Local Bounti, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AppHarvest 0 0 3 0 3.00
Local Bounti 0 1 3 0 2.75

AppHarvest currently has a consensus target price of $8.50, suggesting a potential upside of 219.55%. Local Bounti has a consensus target price of $8.50, suggesting a potential upside of 154.49%. Given AppHarvest’s stronger consensus rating and higher possible upside, equities analysts clearly believe AppHarvest is more favorable than Local Bounti.

Summary

Local Bounti beats AppHarvest on 6 of the 11 factors compared between the two stocks.

About AppHarvest (Get Rating)

AppHarvest, Inc., an applied agricultural technology company, develops and operates indoor farms to grow non-GMO produce free of chemical pesticide residues. Its products include tomatoes; and other fruits and vegetables, such as berries, peppers, cucumbers, and salad greens. The company was incorporated in 2018 and is based in Morehead, Kentucky.

About Local Bounti (Get Rating)

Local Bounti Corporation grows fresh greens and herbs in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.

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