Contrasting Pinnacle Food Group (NASDAQ:PFAI) and Cadiz (NASDAQ:CDZI)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadiz	1	1	1	0	2.00
Pinnacle Food Group	1	0	0	0	1.00

Cadiz presently has a consensus price target of $10.00, indicating a potential upside of 73.31%. Given Cadiz’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Cadiz is more favorable than Pinnacle Food Group.

Profitability

This table compares Cadiz and Pinnacle Food Group’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%
Pinnacle Food Group	N/A	N/A	N/A

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, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Cadiz and Pinnacle Food Group”s gross revenue, earnings per share (EPS) 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
Pinnacle Food Group	$3.29 million	7.47	$290,000.00	N/A	N/A

Pinnacle Food Group has lower revenue, but higher earnings than Cadiz.

Summary

Cadiz beats Pinnacle Food Group on 7 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 Pinnacle Food Group

Our Mission We are committed to becoming a leader in the field of smart farming solution services, focusing on vertical and hydroponic farming. Our goal is to promote sustainable food security by developing and building customized smart farming systems based on the systematic integration of technology, hardware and software, coupled with a full range of integrated technical and supply services (Farming as a Service, or FaaS). We currently sell hydroponic growing systems and technical support services to individual households and community groups and are developing a hydroponic growing system for urban farms. Our hydroponic growing systems include various sensors, growing trays, racks for growing trays, growing baskets, light panels, water tanks and consumables such as seeds, grow sponges and nutrient solutions. We also provide advice, agricultural data intelligence, controllable data applications that assist users to manage growing conditions, environmental design consulting, equipment installation, and agricultural technical support to the users of our equipment. We intend to provide such equipment and services to urban farms (such as organic vegetable farms) in early 2025 and to smart greenhouses and large-scale farming systems later in 2025. Our core technology is based on real-time remote data monitoring, utilizing off-the-shelf sensors we have purchased from third parties. Based on the data received from the installed sensors and analyzed at a data center using big data structures and machine learning training models developed for us by third parties, we provide data intelligence to users of our hydroponic growing systems through our mobile application. The sensors installed on our hydroponic growing systems extract a large amount of data from the growth process of the vegetables. This data is transmitted to our data center, where it is processed using big data structures and machine learning models. While the data structures and machine learning models were initially developed by third parties, we continuously fine-tune them based on the environmental data obtained from our hydroponic growing systems. As the data grows over time, we periodically update and retrain the models to incorporate new patterns observed in the feedback loop. The recommendations we provide through our mobile application are both data-driven and highly customized to each user’s specific growing environment. Our customers can access real-time insights and personalized summary data through our mobile application, enabling them to make informed decisions and optimize their planting. Prior to entering the smart farming solution business in 2023, we were engaged in the sale of ginseng and provided consulting services with respect to its cultivation. We ceased to sell ginseng and provide consulting service with respect to its cultivation in 2023 to concentrate on our smart farming solution business. Our principal executive offices are located in Vancouver, Canada.