Contrasting Mission Produce (NASDAQ:AVO) & S&W Seed (NASDAQ:SANW)

S&W Seed (NASDAQ:SANW) and Mission Produce (NASDAQ:AVO) 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 risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares S&W Seed and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&W Seed	-85.38%	-50.81%	-17.71%
Mission Produce	2.48%	8.24%	5.00%

Volatility & Risk

S&W Seed has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for S&W Seed and Mission Produce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&W Seed	0	0	1	0	3.00
Mission Produce	0	2	3	0	2.60

S&W Seed presently has a consensus target price of $25.00, suggesting a potential upside of 22,627.27%. Mission Produce has a consensus target price of $17.00, suggesting a potential upside of 39.12%. Given S&W Seed’s stronger consensus rating and higher probable upside, research analysts plainly believe S&W Seed is more favorable than Mission Produce.

Insider and Institutional Ownership

61.7% of S&W Seed shares are held by institutional investors. Comparatively, 63.6% of Mission Produce shares are held by institutional investors. 11.4% of S&W Seed shares are held by insiders. Comparatively, 30.9% of Mission Produce shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares S&W Seed and Mission Produce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
S&W Seed	$54.99 million	0.00	-$30.03 million	($14.24)	-0.01
Mission Produce	$1.39 billion	0.62	$37.70 million	$0.46	26.57

Mission Produce has higher revenue and earnings than S&W Seed. S&W Seed is trading at a lower price-to-earnings ratio than Mission Produce, indicating that it is currently the more affordable of the two stocks.

Summary

Mission Produce beats S&W Seed on 11 of the 14 factors compared between the two stocks.

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.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.