Universal (NYSE:UVV) and Kaival Brands Innovations Group (NASDAQ:KAVL) Critical Review

Universal (NYSE:UVV) and Kaival Brands Innovations Group (NASDAQ:KAVL) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Universal and Kaival Brands Innovations Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal	0	1	1	0	2.50
Kaival Brands Innovations Group	1	0	0	0	1.00

Profitability

This table compares Universal and Kaival Brands Innovations Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal	3.51%	8.46%	4.10%
Kaival Brands Innovations Group	N/A	N/A	N/A

Insider and Institutional Ownership

81.0% of Universal shares are owned by institutional investors. 1.9% of Universal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Universal and Kaival Brands Innovations Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal	$2.95 billion	0.44	$95.05 million	$4.11	12.82
Kaival Brands Innovations Group	$1.13 million	N/A	N/A	N/A	N/A

Universal has higher revenue and earnings than Kaival Brands Innovations Group.

Summary

Universal beats Kaival Brands Innovations Group on 8 of the 8 factors compared between the two stocks.

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.

About Kaival Brands Innovations Group

Kaival Brands Innovations Group, Inc. sells, markets, and distributes electronic nicotine delivery system (ENDS) products and related components in the United States. The company offers Bidi Stick, a disposable and tamper-resistant ENDS product in various flavor options for adult cigarette smokers. It sells its products to non-retail customers through convenience stores and the website www.wholesale.bidivapor.com. The company was formerly known as Quick Start Holdings, Inc. and changed its name to Kaival Brands Innovations Group, Inc. in July 2019. The company is based in Grant-Valkaria, Florida. Kaival Brands Innovations Group, Inc. is a subsidiary of Kaival Holdings, LLC.