Lamb Weston Holdings (NYSE: LW) and Calavo Growers (NASDAQ:CVGW) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.
This table compares Lamb Weston Holdings and Calavo Growers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lamb Weston Holdings||N/A||N/A||N/A|
Lamb Weston Holdings pays an annual dividend of $0.75 per share and has a dividend yield of 1.7%. Calavo Growers pays an annual dividend of $0.90 per share and has a dividend yield of 1.2%. Calavo Growers pays out 39.1% of its earnings in the form of a dividend.
This is a summary of current recommendations for Lamb Weston Holdings and Calavo Growers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lamb Weston Holdings||0||3||4||1||2.75|
Lamb Weston Holdings presently has a consensus price target of $46.00, indicating a potential upside of 2.66%. Calavo Growers has a consensus price target of $78.67, indicating a potential upside of 7.91%. Given Calavo Growers’ stronger consensus rating and higher possible upside, analysts plainly believe Calavo Growers is more favorable than Lamb Weston Holdings.
Earnings and Valuation
This table compares Lamb Weston Holdings and Calavo Growers’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lamb Weston Holdings||$3.17 billion||2.07||$654.20 million||N/A||N/A|
|Calavo Growers||$1.01 billion||1.27||$75.09 million||$2.30||31.70|
Lamb Weston Holdings has higher revenue and earnings than Calavo Growers.
Institutional and Insider Ownership
77.3% of Lamb Weston Holdings shares are owned by institutional investors. Comparatively, 83.3% of Calavo Growers shares are owned by institutional investors. 9.9% of Calavo Growers shares are owned by 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.
About Lamb Weston Holdings
Lamb Weston Holdings, Inc. (Lamb Weston), is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the world. The Company’s segments include Global, Foodservice, Retail and Other. The Global segment includes operations associated with Lamb Weston’s business with large chain restaurant customers, whether those results are generated in the United States or abroad, as well as operations associated with retail and foodservice customers located outside of the United States and Canada. The Foodservice segment includes sales to a line of foodservice distribution customers in the United States and Canada. The Retail reporting segment includes sales to grocery, mass, club, and specialty retailers primarily in the United States. The Other segment includes the operations from Lamb Weston’s frozen vegetable business. It also includes the operations from Lamb Weston’s dairy business.
About Calavo Growers
Calavo Growers, Inc. operates in the avocado industry. The Company provides value-added fresh food. The Company distributes its products both domestically and internationally and internationally. It operates in three business segments: Fresh products, Calavo Foods and Renaissance Food Group, LLC (RFG). The Company is engaged in marketing and distributing avocados, prepared avocados and other perishable foods, which allows it to deliver an array of fresh and prepared food products to food distributors, produce wholesalers, supermarkets, convenience stores and restaurants on a worldwide basis. The Company procures avocados principally from California and Mexico. Through its various operating facilities, the Company sorts, packs, and/or ripens avocados, tomatoes and/or Hawaiian grown papayas; processes and packages fresh cut fruit and vegetables, salads, wraps, sandwiches, fresh snacking products and a range of behind-the-glass deli items, and produces and packages guacamole and salsa.
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