Financial Comparison: Lavoro (NASDAQ:LVRO) vs. AgriFORCE Growing Systems (NASDAQ:AGRI)

Lavoro (NASDAQ:LVRO) and AgriFORCE Growing Systems (NASDAQ:AGRI) 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 institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares Lavoro and AgriFORCE Growing Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$9.08 billion	0.02	-$152.49 million	($1.63)	-0.87
AgriFORCE Growing Systems	$70,000.00	59.32	-$16.27 million	($36.94)	-0.09

AgriFORCE Growing Systems has lower revenue, but higher earnings than Lavoro. Lavoro is trading at a lower price-to-earnings ratio than AgriFORCE Growing Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lavoro and AgriFORCE Growing Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	N/A	N/A	N/A
AgriFORCE Growing Systems	N/A	-193.94%	-84.08%

Risk and Volatility

Lavoro has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, AgriFORCE Growing Systems has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Lavoro and AgriFORCE Growing Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	3	1	0	0	1.25
AgriFORCE Growing Systems	1	0	0	0	1.00

Lavoro currently has a consensus price target of $3.44, suggesting a potential upside of 142.08%. Given Lavoro’s stronger consensus rating and higher possible upside, research analysts plainly believe Lavoro is more favorable than AgriFORCE Growing Systems.

Institutional & Insider Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 8.2% of AgriFORCE Growing Systems shares are held by institutional investors. 6.7% of AgriFORCE Growing Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Lavoro beats AgriFORCE Growing Systems on 7 of the 12 factors compared between the two stocks.

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 AgriFORCE Growing Systems

AgriFORCE Growing Systems Ltd., an agriculture-focused technology company, focuses on the development and commercialization of plant-based ingredients and products that deliver healthier and nutritious solutions. The company operates in two divisions, AgriFORCE Solutions and AgriFORCE Brands. It also offers management advisory services and holds intellectual property, as well as engages in the real estate holding and development activities. The company was formerly known as Canivate Growing Systems Ltd. and changed its name to AgriFORCE Growing Systems Ltd. in November 2019. AgriFORCE Growing Systems Ltd. was incorporated in 2017 and is headquartered in Vancouver, Canada.