Cadiz (NASDAQ:CDZI – Get Free Report) and Dole (NYSE:DOLE – Get Free Report) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Risk and Volatility
Cadiz has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Dole has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Profitability
This table compares Cadiz and Dole’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cadiz | -206.65% | -93.48% | -24.26% |
| Dole | 0.17% | 7.98% | 2.56% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cadiz | 1 | 1 | 1 | 0 | 2.00 |
| Dole | 0 | 2 | 0 | 0 | 2.00 |
Cadiz presently has a consensus target price of $10.00, suggesting a potential upside of 74.22%. Dole has a consensus target price of $16.00, suggesting a potential upside of 6.21%. Given Cadiz’s higher possible upside, equities analysts plainly believe Cadiz is more favorable than Dole.
Earnings & Valuation
This table compares Cadiz and Dole”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadiz | $9.61 million | 49.64 | -$31.14 million | ($0.49) | -11.71 |
| Dole | $8.97 billion | 0.16 | $125.51 million | $0.15 | 100.43 |
Dole has higher revenue and earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than Dole, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
79.8% of Cadiz shares are owned by institutional investors. 1.7% of Cadiz shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Dole beats Cadiz on 7 of the 13 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 Dole
Dole Food Company, Inc. (Dole) is a producer, marketer and distributor of fresh fruit and fresh vegetables. The Company is a producer of bananas and pineapples, and packaged fruit products, packaged salads and fresh-packed vegetables. The Company has three business segments: fresh fruit, fresh vegetables and packaged foods. The fresh fruit segment contains operating divisions that produce and market fresh fruit to wholesale, retail and institutional customers worldwide. The fresh vegetables segment produces and markets fresh-packed and value-added vegetables and salads to wholesale, retail and institutional customers, primarily in North America and Europe. The packaged foods segment contains several operating divisions that produce and market packaged foods, including fruit, juices, frozen fruit and healthy snack foods. In November 2013, Dole Food Company, Inc announced that an investor group acquired the remaining 60.43% interest in the Company.
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