Mission Produce (NASDAQ:AVO) and Alico (NASDAQ:ALCO) Critical Contrast

Alico (NASDAQ:ALCO) and Mission Produce (NASDAQ:AVO) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Earnings and Valuation

This table compares Alico and Mission Produce”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alico	$46.64 million	5.14	$6.97 million	($18.43)	-1.70
Mission Produce	$1.23 billion	0.72	$36.70 million	$0.50	25.08

Mission Produce has higher revenue and earnings than Alico. Alico is trading at a lower price-to-earnings ratio than Mission Produce, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Alico has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Alico and Mission Produce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alico	0	0	0	0	0.00
Mission Produce	0	0	2	0	3.00

Mission Produce has a consensus target price of $15.50, indicating a potential upside of 23.60%. Given Mission Produce’s stronger consensus rating and higher possible upside, analysts plainly believe Mission Produce is more favorable than Alico.

Insider & Institutional Ownership

62.3% of Alico shares are owned by institutional investors. Comparatively, 63.6% of Mission Produce shares are owned by institutional investors. 8.3% of Alico shares are owned by insiders. Comparatively, 35.4% of Mission Produce shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Alico and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alico	-284.75%	-41.08%	-25.79%
Mission Produce	2.63%	7.82%	4.56%

Summary

Mission Produce beats Alico on 12 of the 14 factors compared between the two stocks.

About Alico

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates in two segments, Alico Citrus, and Land Management and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit and value-added services, which include contracting for the harvesting, marketing, and hauling of citrus. The Land Management and Other Operations segment is involved in the activities related to native plant sales, grazing and hunting leasing, management, and/or conservation of unimproved native pastureland; and activities related to rock mining royalties and other insignificant lines of business, as well as in the activities related to owning and/or leasing improved farmland. The company was incorporated in 1960 and is based in Fort Myers, Florida.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.