Head-To-Head Analysis: Lavoro (NASDAQ:LVRO) versus Origin Agritech (NASDAQ:SEED)

Lavoro (NASDAQ:LVRO) and Origin Agritech (NASDAQ:SEED) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

Lavoro has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Origin Agritech has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Profitability

This table compares Lavoro and Origin Agritech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	N/A	N/A	N/A
Origin Agritech	N/A	N/A	N/A

Earnings & Valuation

This table compares Lavoro and Origin Agritech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$1.89 billion	0.10	-$152.49 million	($1.63)	-0.95
Origin Agritech	$16.18 million	0.61	$2.95 million	N/A	N/A

Origin Agritech has lower revenue, but higher earnings than Lavoro.

Institutional & Insider Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 1.7% of Origin Agritech shares are held by institutional investors. 15.4% of Origin Agritech shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lavoro and Origin Agritech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	3	1	0	0	1.25
Origin Agritech	1	0	0	0	1.00

Lavoro presently has a consensus target price of $3.44, suggesting a potential upside of 122.49%. Given Lavoro’s stronger consensus rating and higher probable upside, analysts clearly believe Lavoro is more favorable than Origin Agritech.

About Lavoro

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 São Paulo, Brazil.

About Origin Agritech

Origin Agritech Limited, together with its subsidiaries, operates as an agricultural biotechnology in the People’s Republic of China. The company engages in the development and distribution of seed products; and research on genetically enhanced breeding technologies in agricultural crops. Its products include corn, soybean, canola, and rice seeds. The company is also involved in the development, production, and distribution of hybrid crop seeds, as well as develops hybrid seed technology. In addition, it operates an e-commerce platform. The company has a collaboration agreement with the Chinese Academy of Agricultural Sciences, the National Maize Improvement Center, Henan Agriculture University, China Agricultural University, and Zhejiang University for seed genetic modifications and biotechnologies. Origin Agritech Limited was founded in 1997 and is headquartered in Beijing, the People’s Republic of China.