Cadiz (NASDAQ:CDZI – Get Free Report) and S&W Seed (NASDAQ:SANW – Get Free Report) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Volatility and Risk
Cadiz has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, S&W Seed has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.
Profitability
This table compares Cadiz and S&W Seed’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% |
| S&W Seed | -85.38% | -50.81% | -17.71% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cadiz | 1 | 1 | 1 | 0 | 2.00 |
| S&W Seed | 0 | 0 | 1 | 0 | 3.00 |
Cadiz currently has a consensus target price of $10.00, suggesting a potential upside of 55.04%. S&W Seed has a consensus target price of $25.00, suggesting a potential upside of 22,627.27%. Given S&W Seed’s stronger consensus rating and higher probable upside, analysts plainly believe S&W Seed is more favorable than Cadiz.
Earnings and Valuation
This table compares Cadiz and S&W Seed”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadiz | $9.61 million | 55.78 | -$31.14 million | ($0.49) | -13.16 |
| S&W Seed | $54.99 million | 0.00 | -$30.03 million | ($14.24) | -0.01 |
S&W Seed has higher revenue and earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than S&W Seed, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
79.8% of Cadiz shares are owned by institutional investors. Comparatively, 61.7% of S&W Seed shares are owned by institutional investors. 1.7% of Cadiz shares are owned by company insiders. Comparatively, 11.4% of S&W Seed shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
S&W Seed beats Cadiz on 9 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 S&W Seed
S&W Seed Co. engages in the breeding, production, and sale of stevia and alfalfa seeds. The company was founded in 1980 and is headquartered in Longmont, CO.
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