Calavo Growers (NASDAQ:CVGW) and Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND) Critical Contrast

Calavo Growers (NASDAQ:CVGW) and Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND) 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 institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Earnings and Valuation

This table compares Calavo Growers and Brasilagro Cia Brasileira De Propriedades Agricolas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calavo Growers	$693.71 million	0.70	-$1.08 million	$0.88	31.10
Brasilagro Cia Brasileira De Propriedades Agricolas	$195.52 million	2.00	$24.08 million	$0.52	7.32

Brasilagro Cia Brasileira De Propriedades Agricolas has lower revenue, but higher earnings than Calavo Growers. Brasilagro Cia Brasileira De Propriedades Agricolas is trading at a lower price-to-earnings ratio than Calavo Growers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Calavo Growers and Brasilagro Cia Brasileira De Propriedades Agricolas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calavo Growers	0	0	1	0	3.00
Brasilagro Cia Brasileira De Propriedades Agricolas	0	0	0	0	0.00

Calavo Growers currently has a consensus price target of $40.00, indicating a potential upside of 46.15%. Given Calavo Growers’ stronger consensus rating and higher probable upside, equities analysts clearly believe Calavo Growers is more favorable than Brasilagro Cia Brasileira De Propriedades Agricolas.

Profitability

This table compares Calavo Growers and Brasilagro Cia Brasileira De Propriedades Agricolas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calavo Growers	2.28%	11.73%	7.86%
Brasilagro Cia Brasileira De Propriedades Agricolas	11.99%	6.47%	3.66%

Risk & Volatility

Calavo Growers has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Brasilagro Cia Brasileira De Propriedades Agricolas has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Institutional and Insider Ownership

81.3% of Calavo Growers shares are owned by institutional investors. Comparatively, 1.2% of Brasilagro Cia Brasileira De Propriedades Agricolas shares are owned by institutional investors. 7.2% of Calavo Growers shares are owned by insiders. Comparatively, 0.7% of Brasilagro Cia Brasileira De Propriedades Agricolas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Calavo Growers pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Brasilagro Cia Brasileira De Propriedades Agricolas pays an annual dividend of $0.25 per share and has a dividend yield of 6.6%. Calavo Growers pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brasilagro Cia Brasileira De Propriedades Agricolas pays out 48.1% of its earnings in the form of a dividend. Calavo Growers has increased its dividend for 1 consecutive years. Brasilagro Cia Brasileira De Propriedades Agricolas is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Calavo Growers beats Brasilagro Cia Brasileira De Propriedades Agricolas on 11 of the 17 factors compared between the two stocks.

About Calavo Growers

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates through Grown and Prepared segments. The Grown segment distributes tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Prepared segment is involved in the distribution of prepared avocado products, salsa, fresh-cut fruit and vegetables, fresh prepared entrees salads, wraps, sandwiches, parfaits, and fresh snacking products, as well as ready-to-heat entrees, other hot bars and various deli items, meals kit components, and salad kits. It offers its products under the Calavo brands and related logos; and Avo Fresco, Bueno, Avo Fresco, Bueno, Calavo Gold, Celebrate the Taste, El Dorado, Taste of Paradise, The First Name in Avocados, The Family of Fresh, ProRipeVIP, RIPE NOW!, Renaissance Food Group, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.

About Brasilagro Cia Brasileira De Propriedades Agricolas

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil and internationally. It operates through six segments: Real Estate, Grains, Sugarcane, livestock, Cotton, and Other. The company involved in the cultivation of soybean, corn, sesame, and cotton, as well as sugarcane; and production and sale of beef calves after weaning. It also imports and exports agricultural products, livestock, and forestry activities and inputs; purchases, sells, and/or rents rural/urban properties; provides real estate brokerage services; and manages third-party assets. It operates farms through own and leased lands. BrasilAgro – Companhia Brasileira de Propriedades Agrícolas was incorporated in 2005 and is headquartered in São Paulo, Brazil.