Cadiz (NASDAQ:CDZI – Get Free Report) and Local Bounti (NYSE:LOCL – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Insider & Institutional Ownership
79.8% of Cadiz shares are owned by institutional investors. Comparatively, 28.0% of Local Bounti shares are owned by institutional investors. 1.7% of Cadiz shares are owned by company insiders. Comparatively, 19.8% of Local Bounti shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Cadiz has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Local Bounti has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadiz | $9.61 million | 49.90 | -$31.14 million | ($0.49) | -11.78 |
| Local Bounti | $38.14 million | 1.31 | -$119.90 million | ($11.34) | -0.20 |
Cadiz has higher earnings, but lower revenue than Local Bounti. Cadiz is trading at a lower price-to-earnings ratio than Local Bounti, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Cadiz and Local Bounti, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cadiz | 1 | 1 | 1 | 0 | 2.00 |
| Local Bounti | 1 | 0 | 0 | 0 | 1.00 |
Cadiz currently has a consensus price target of $10.00, suggesting a potential upside of 73.31%. Given Cadiz’s stronger consensus rating and higher probable upside, analysts clearly believe Cadiz is more favorable than Local Bounti.
Profitability
This table compares Cadiz and Local Bounti’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% |
| Local Bounti | -265.21% | N/A | -28.36% |
Summary
Cadiz beats Local Bounti on 9 of the 14 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 Local Bounti
Local Bounti Corporation grows and packs fresh greens in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.
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