SunOpta (NASDAQ:STKL) and Davis Commodities (NASDAQ:DTCK) Financial Contrast

SunOpta (NASDAQ:STKL) and Davis Commodities (NASDAQ:DTCK) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares SunOpta and Davis Commodities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunOpta	-20.14%	1.93%	0.71%
Davis Commodities	N/A	N/A	N/A

Institutional and Insider Ownership

97.5% of SunOpta shares are held by institutional investors. 4.7% of SunOpta shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for SunOpta and Davis Commodities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunOpta	0	0	4	0	3.00
Davis Commodities	0	0	0	0	N/A

SunOpta currently has a consensus target price of $9.00, suggesting a potential upside of 95.23%. Given SunOpta’s higher possible upside, equities analysts clearly believe SunOpta is more favorable than Davis Commodities.

Valuation and Earnings

This table compares SunOpta and Davis Commodities’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunOpta	$934.66 million	0.58	-$4.84 million	($1.42)	-3.25
Davis Commodities	N/A	N/A	N/A	N/A	N/A

Davis Commodities has lower revenue, but higher earnings than SunOpta.

Summary

SunOpta beats Davis Commodities on 7 of the 8 factors compared between the two stocks.

About SunOpta

SunOpta Inc. engages in manufacture and sale of plant-based and fruit-based food and beverage products to retailers, foodservice operators, branded food companies, and food manufacturers in the United States, Canada, and internationally. The company operates through Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages segments. The Plant-Based Foods and Beverages segment provides plant-based beverages, and liquid and powder ingredients that utilizes almond, soy, coconut, rice, oat, hemp, and other bases, as well as broths, teas, and nutritional beverages. The Fruit-Based Foods and Beverages segment offers individually quick frozen (IQF) fruits, such as strawberries, mangoes, blueberries, pineapples, blends, and other berries for retail; and IQF and bulk frozen fruits, including purées, toppings, and smoothies for foodservice, and custom fruit preparations for industrial use. This segment also provides fruit snacks comprising bars, twists, ropes, and bite-sized products. The company was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in October 2003. SunOpta Inc. was incorporated in 1973 and is headquartered in Eden Prairie, Minnesota.

About Davis Commodities

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill, Lin, and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. The company was founded in 1999 and is headquartered in Singapore. Davis Commodities Limited operates as a subsidiary of Davis & KT Holdings Pte. Ltd.