Lavoro (LVRO) versus Its Competitors Critical Analysis

Lavoro (NASDAQ:LVROGet Free Report) is one of 29 public companies in the “Miscellaneous retail” industry, but how does it compare to its competitors? We will compare Lavoro to similar businesses based on the strength of its institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Profitability

This table compares Lavoro and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lavoro -5.99% -6.44% -1.45%
Lavoro Competitors -23.16% -42.80% -4.42%

Risk and Volatility

Lavoro has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Lavoro’s competitors have a beta of 1.07, indicating that their average share price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lavoro and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lavoro $9.43 billion -$50.50 million -5.79
Lavoro Competitors $2.27 billion $36.60 million 9.75

Lavoro has higher revenue, but lower earnings than its competitors. Lavoro is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 39.2% of shares of all “Miscellaneous retail” companies are held by institutional investors. 20.2% of shares of all “Miscellaneous retail” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lavoro and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lavoro 0 1 2 0 2.67
Lavoro Competitors 120 540 460 6 2.31

Lavoro currently has a consensus price target of $10.83, indicating a potential upside of 91.06%. As a group, “Miscellaneous retail” companies have a potential downside of 1.36%. Given Lavoro’s stronger consensus rating and higher possible upside, research analysts plainly believe Lavoro is more favorable than its competitors.

Summary

Lavoro beats its competitors on 7 of the 13 factors compared.

Lavoro Company Profile

(Get Free Report)

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 Sao Paulo, Brazil.

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