Cadiz (NASDAQ:CDZI) and CHS (NASDAQ:CHSCP) Critical Survey

Cadiz (NASDAQ:CDZI) and CHS (NASDAQ:CHSCP) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Earnings & Valuation

This table compares Cadiz and CHS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadiz	$15.05 million	34.67	-$31.14 million	($0.49)	-12.82
CHS	$35.46 billion	N/A	$597.92 million	N/A	N/A

CHS has higher revenue and earnings than Cadiz.

Risk and Volatility

Cadiz has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, CHS has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Profitability

This table compares Cadiz and CHS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadiz	-217.49%	-97.55%	-24.76%
CHS	1.69%	6.96%	3.06%

Analyst Ratings

This is a breakdown of current ratings and target prices for Cadiz and CHS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadiz	1	1	1	0	2.00
CHS	0	0	0	0	0.00

Cadiz presently has a consensus price target of $10.00, suggesting a potential upside of 59.24%. Given Cadiz’s stronger consensus rating and higher possible upside, research analysts clearly believe Cadiz is more favorable than CHS.

Institutional and Insider Ownership

79.8% of Cadiz shares are held by institutional investors. 1.7% of Cadiz shares are held by insiders. Comparatively, 2.3% of CHS shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

CHS beats Cadiz on 6 of the 11 factors compared between the two stocks.

About Cadiz

Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The company operates through Land and Water Resources; and Water Filtration Technology segments. It offers water supply, water storage, water conveyance, and water filtration services. In addition, the company is involved in the cultivation of grain crops and alfalfa, as well as provides water filtration solutions for impaired or contaminated groundwater sources. It serves public water systems, government agencies, and other clients. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.

About CHS

CHS Inc., an integrated agricultural company, engages in the provision of grains, food, and energy resources to businesses and consumers worldwide. It is involved in the operation of petroleum refineries and pipelines; the supply, marketing, and distribution of refined fuels; the blending, sale, and distribution of lubricants; and the supply of propane, asphalt, and other natural gas liquids. The company also processes and sells crude oil into refined petroleum products under the Cenex brand name to member cooperatives and other independent retailers through a network of approximately 1,500 sites and provides transportation services. In addition, it processes and markets grains and oilseeds and offers seeds, crop nutrients, crop protection products, animal feed, animal health products, refined and renewable fuels, as well as refined oils, meal, soy flour, and processed sunflower products. Additionally, it produces and distributes edible oil-based products. CHS Inc. was formerly known as Cenex Harvest States Cooperatives and changed its name to CHS Inc. in August 2003. The company was incorporated in 1936 and is based in Inver Grove Heights, Minnesota.