Mission Produce (NASDAQ:AVO – Get Free Report) and Cadiz (NASDAQ:CDZI – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Mission Produce and Cadiz, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mission Produce | 0 | 2 | 3 | 1 | 2.83 |
| Cadiz | 2 | 0 | 1 | 0 | 1.67 |
Mission Produce currently has a consensus price target of $17.00, suggesting a potential upside of 39.00%. Cadiz has a consensus price target of $10.00, suggesting a potential upside of 130.95%. Given Cadiz’s higher probable upside, analysts plainly believe Cadiz is more favorable than Mission Produce.
Risk & Volatility
Profitability
This table compares Mission Produce and Cadiz’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mission Produce | 2.48% | 8.24% | 5.00% |
| Cadiz | -221.43% | -129.97% | -24.08% |
Insider and Institutional Ownership
63.6% of Mission Produce shares are held by institutional investors. Comparatively, 79.8% of Cadiz shares are held by institutional investors. 30.9% of Mission Produce shares are held by insiders. Comparatively, 1.7% of Cadiz shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Mission Produce 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 | |
| Mission Produce | $1.39 billion | 0.62 | $37.70 million | $0.46 | 26.59 |
| Cadiz | $16.31 million | 22.32 | -$34.15 million | ($0.46) | -9.41 |
Mission Produce has higher revenue and earnings than Cadiz. Cadiz 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 Cadiz on 11 of the 15 factors compared between the two stocks.
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.
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.
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