Farmmi (NASDAQ:FAMI) versus S&W Seed (NASDAQ:SANW) Critical Review

Farmmi (NASDAQ:FAMI) and S&W Seed (NASDAQ:SANW) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Profitability

This table compares Farmmi and S&W Seed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmmi	N/A	N/A	N/A
S&W Seed	-85.38%	-50.81%	-17.71%

Earnings & Valuation

This table compares Farmmi and S&W Seed”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmmi	$64.13 million	0.04	-$4.66 million	N/A	N/A
S&W Seed	$54.99 million	0.01	-$30.03 million	($14.24)	-0.02

Farmmi has higher revenue and earnings than S&W Seed.

Insider and Institutional Ownership

0.3% of Farmmi shares are held by institutional investors. Comparatively, 61.7% of S&W Seed shares are held by institutional investors. 1.7% of Farmmi shares are held by company insiders. Comparatively, 11.4% of S&W Seed shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Farmmi has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, S&W Seed has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Farmmi and S&W Seed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmmi	1	0	0	0	1.00
S&W Seed	0	0	1	0	3.00

S&W Seed has a consensus target price of $25.00, indicating a potential upside of 7,407.51%. Given S&W Seed’s stronger consensus rating and higher probable upside, analysts plainly believe S&W Seed is more favorable than Farmmi.

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.

About S&W Seed

S&W Seed Co. engages in the breeding, production, and sale of stevia and alfalfa seeds. The company was founded in 1980 and is headquartered in Longmont, CO.