Adecoagro (NYSE:AGRO – Get Free Report) and AgriFORCE Growing Systems (NASDAQ:AGRI – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.
Insider & Institutional Ownership
45.3% of Adecoagro shares are held by institutional investors. Comparatively, 8.2% of AgriFORCE Growing Systems shares are held by institutional investors. 10.7% of AgriFORCE Growing Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Adecoagro and AgriFORCE Growing Systems’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Adecoagro | 2.30% | 3.24% | 1.43% |
AgriFORCE Growing Systems | N/A | -193.94% | -84.08% |
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Adecoagro | $1.52 billion | 0.53 | $92.34 million | $0.35 | 22.91 |
AgriFORCE Growing Systems | $70,000.00 | 44.91 | -$16.27 million | N/A | N/A |
Adecoagro has higher revenue and earnings than AgriFORCE Growing Systems.
Volatility and Risk
Adecoagro has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, AgriFORCE Growing Systems has a beta of -0.15, indicating that its share price is 115% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Adecoagro and AgriFORCE Growing Systems, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Adecoagro | 2 | 1 | 0 | 0 | 1.33 |
AgriFORCE Growing Systems | 0 | 0 | 0 | 0 | 0.00 |
Adecoagro currently has a consensus price target of $9.60, suggesting a potential upside of 19.70%. Given Adecoagro’s stronger consensus rating and higher possible upside, research analysts plainly believe Adecoagro is more favorable than AgriFORCE Growing Systems.
Summary
Adecoagro beats AgriFORCE Growing Systems on 9 of the 11 factors compared between the two stocks.
About Adecoagro
Adecoagro S.A. operates as an agro-industrial company in South America. The company mainly operates through three segments: Farming; Sugar, Ethanol and Energy; and Land Transformation. It engages in farming crops, rice and other agricultural products, dairy operations, and land transformation activities, as well as sugar, ethanol, and energy production activities. The company is involved in the planting, harvesting, and sale of grains, oilseeds, and fibers, including wheat, corn, soybeans, peanuts, cotton, sunflowers, and others; provision of grain warehousing/conditioning, handling, and drying services to third parties; and purchase and sale of crops produced by third parties. It also plants, harvests, processes, and markets rice; and produces and sells raw milk, UHT, cheese, and powder milk. In addition, the company engages in the cultivating and transforming of sugarcane into ethanol, sugar, and electricity. Further, it is involved in the identification and acquisition of underdeveloped and undermanaged farmland, and the realization of value through the strategic disposition of assets. Adecoagro S.A. was founded in 2002 and is based in Luxembourg, Luxembourg.
About AgriFORCE Growing Systems
AgriFORCE Growing Systems Ltd., an agriculture-focused technology company, focuses on the development and commercialization of plant-based ingredients and products that deliver healthier and nutritious solutions. The company operates in two divisions, AgriFORCE Solutions and AgriFORCE Brands. It also offers management advisory services and holds intellectual property, as well as engages in the real estate holding and development activities. The company was formerly known as Canivate Growing Systems Ltd. and changed its name to AgriFORCE Growing Systems Ltd. in November 2019. AgriFORCE Growing Systems Ltd. was incorporated in 2017 and is headquartered in Vancouver, Canada.
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