Reviewing Lavoro (NASDAQ:LVRO) & Cadiz (NASDAQ:CDZI)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Lavoro and Cadiz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	3	1	0	0	1.25
Cadiz	1	1	1	0	2.00

Lavoro presently has a consensus target price of $3.44, indicating a potential upside of 212.50%. Cadiz has a consensus target price of $10.00, indicating a potential upside of 51.29%. Given Lavoro’s higher possible upside, research analysts plainly believe Lavoro is more favorable than Cadiz.

Institutional & Insider Ownership

2.5% of Lavoro shares are owned by institutional investors. Comparatively, 79.8% of Cadiz shares are owned by institutional investors. 1.7% of Cadiz shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Lavoro and Cadiz”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$1.14 billion	0.11	-$466.28 million	($1.57)	-0.70
Cadiz	$9.61 million	57.17	-$31.14 million	($0.49)	-13.49

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

Risk & Volatility

Lavoro has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lavoro	N/A	N/A	N/A
Cadiz	-206.65%	-93.48%	-24.26%

Summary

Cadiz beats Lavoro on 8 of the 14 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 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.