Reviewing YaSheng Group (OTCMKTS:HERB) and Cadiz (NASDAQ:CDZI)

YaSheng Group (OTCMKTS:HERB) and Cadiz (NASDAQ:CDZI) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Valuation & Earnings

This table compares YaSheng Group and Cadiz”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YaSheng Group	$18.59 million	N/A	$5.31 million	N/A	N/A
Cadiz	$15.05 million	25.72	-$31.14 million	($0.51)	-9.25

YaSheng Group has higher revenue and earnings than Cadiz.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for YaSheng Group and Cadiz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YaSheng Group	0	0	0	0	0.00
Cadiz	0	1	1	0	2.50

Cadiz has a consensus price target of $10.00, suggesting a potential upside of 111.86%. Given Cadiz’s stronger consensus rating and higher probable upside, analysts clearly believe Cadiz is more favorable than YaSheng Group.

Insider and Institutional Ownership

79.8% of Cadiz shares are held by institutional investors. 1.7% of Cadiz shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares YaSheng Group and Cadiz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YaSheng Group	N/A	N/A	N/A
Cadiz	-217.49%	-97.55%	-24.76%

Volatility & Risk

YaSheng Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.

Summary

Cadiz beats YaSheng Group on 6 of the 11 factors compared between the two stocks.

About YaSheng Group

YaSheng Group, through its subsidiaries, designs, develops, manufactures, and markets farming and sideline products; chemical materials and products; textiles; construction materials; and livestock and poultry products primarily in the People's Republic of China. It cultivates, processes, markets, and distributes various food and agro-byproducts. The company's products include cotton, corns, barley, wheat, flax, and alfalfa; vegetables comprising onions, potatoes, beet, and peas; fruits, including apples, pears, and apricots; specialty crops consisting of hops, wolfberries, cumin, hemp, and liquorices; seeds, such as black melon, sunflower, corn, hemp, and flax seeds; and eggs. It also provides construction materials, such as cement; and designs, develops, and markets new technologies related to agriculture and genetic biology. The company sells its products to food processors, supermarkets, and wholesale stores through distributors, as well as to direct customers. YaSheng Group exports its products. The company was founded in 1998 and is based in Lanzhou, the People's Republic of China. As of December 31, 2015, YaSheng Group is a subsidiary of Gansu Yasheng Salt Chemical Industrial Group, Ltd.

About Cadiz

Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The company operates through Land and Water Resources; and Water Filtration Technology segments. It offers water supply, water storage, water conveyance, and water filtration services. In addition, the company is involved in the cultivation of grain crops and alfalfa, as well as provides water filtration solutions for impaired or contaminated groundwater sources. It serves public water systems, government agencies, and other clients. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.