Analyzing Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) and Farmmi (NASDAQ:FAMI)

Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) and Farmmi (NASDAQ:FAMI) are both small-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Volatility and Risk

Cresud S.A.C.I.F. y A. has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Farmmi has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cresud S.A.C.I.F. y A. and Farmmi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cresud S.A.C.I.F. y A.	$887.72 million	0.66	$96.15 million	$1.15	8.34
Farmmi	$64.13 million	0.04	-$4.66 million	N/A	N/A

Cresud S.A.C.I.F. y A. has higher revenue and earnings than Farmmi.

Analyst Ratings

This is a summary of recent ratings for Cresud S.A.C.I.F. y A. and Farmmi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cresud S.A.C.I.F. y A.	0	1	0	0	2.00
Farmmi	1	0	0	0	1.00

Insider & Institutional Ownership

12.9% of Cresud S.A.C.I.F. y A. shares are held by institutional investors. Comparatively, 0.3% of Farmmi shares are held by institutional investors. 36.2% of Cresud S.A.C.I.F. y A. shares are held by company insiders. Comparatively, 1.7% of Farmmi shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cresud S.A.C.I.F. y A. and Farmmi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cresud S.A.C.I.F. y A.	10.57%	4.65%	1.99%
Farmmi	N/A	N/A	N/A

Summary

Cresud S.A.C.I.F. y A. beats Farmmi on 9 of the 10 factors compared between the two stocks.

About Cresud S.A.C.I.F. y A.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.

About Farmmi

Farmmi, Inc., through its subsidiaries, engages in processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondose, coprinus comatus, and hericium erinaceus, as well as dried edible fungi. It is also involved in trading of cotton, corn, and other agricultural products. The company's products are offered under Lishui Shangeng, Farmmi Liangpin, Forasen, and Puyangtang brands. It offers its products through local distributors to processing manufacturers, supermarkets, restaurants, cafeterias, and local specialty stores. The company was founded in 1994 and is headquartered in Lishui, China.