Alico (NASDAQ: ALCO) and S&W Seed (NASDAQ:SANW) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Insider and Institutional Ownership
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74.2% of Alico shares are owned by institutional investors. Comparatively, 68.5% of S&W Seed shares are owned by institutional investors. 60.1% of Alico shares are owned by insiders. Comparatively, 4.4% of S&W Seed shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Alico and S&W Seed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alico | -9.44% | -2.23% | -0.91% |
| S&W Seed | -16.00% | -2.93% | -1.52% |
Earnings and Valuation
This table compares Alico and S&W Seed’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alico | $129.83 million | 2.00 | -$9.45 million | N/A | N/A |
| S&W Seed | $75.37 million | 1.06 | -$11.82 million | ($0.10) | -32.70 |
Alico has higher revenue and earnings than S&W Seed.
Analyst Ratings
This is a breakdown of current ratings and target prices for Alico and S&W Seed, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alico | 0 | 0 | 0 | 0 | N/A |
| S&W Seed | 0 | 1 | 2 | 0 | 2.67 |
S&W Seed has a consensus target price of $5.50, indicating a potential upside of 68.20%. Given S&W Seed’s higher probable upside, analysts clearly believe S&W Seed is more favorable than Alico.
Risk & Volatility
Alico has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, S&W Seed has a beta of -0.68, indicating that its stock price is 168% less volatile than the S&P 500.
Dividends
Alico pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. S&W Seed does not pay a dividend.
Summary
Alico beats S&W Seed on 10 of the 12 factors compared between the two stocks.
About Alico
Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates through three segments: Alico Citrus, Conservation and Environmental Resources, and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruits for sale to fresh and processed citrus markets; and contracting for the harvesting, marketing, and hauling of citrus. The Conservation and Environmental Resources segment is involved in the activities related to cattle grazing, sod, native plant, and animal sales; and leasing, management, and/or conservation of unimproved native pasture land. The Other Operations segment engages in the activities related to rock mining royalties, oil exploration, and other lines of business; and ownership and/or lease of improved farmland. Alico, Inc. owned approximately 122,000 acres of land located in 12 counties in Florida, which include the Alachua, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Lee, Martin, Osceola, and Polk. The company was founded in 1960 and is based in Fort Myers, Florida. Alico, Inc. is a subsidiary of 734 Investors, LLC.
About S&W Seed
S&W Seed Company, an agricultural company, engages in breeding, growing, processing, and selling alfalfa seeds. The company sells its seeds to distributors and dealers in approximately 30 countries worldwide. S&W Seed Company was founded in 1980 and is headquartered in Sacramento, California.
