Royal Hawaiian Orchards (OTCMKTS:NNUTU) and S&W Seed (NASDAQ:SANW) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares Royal Hawaiian Orchards and S&W Seed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Hawaiian Orchards 15.60% 3.73% 3.07%
S&W Seed -7.37% -6.13% -3.18%

Insider & Institutional Ownership

1.1% of Royal Hawaiian Orchards shares are owned by institutional investors. Comparatively, 65.9% of S&W Seed shares are owned by institutional investors. 7.9% of Royal Hawaiian Orchards shares are owned by insiders. Comparatively, 5.2% of S&W Seed shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Royal Hawaiian Orchards has a beta of -2636.33, suggesting that its share price is 263,733% less volatile than the S&P 500. Comparatively, S&W Seed has a beta of -0.55, suggesting that its share price is 155% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Royal Hawaiian Orchards and S&W Seed, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Hawaiian Orchards 0 0 0 0 N/A
S&W Seed 0 0 2 0 3.00

S&W Seed has a consensus target price of $5.50, indicating a potential upside of 81.52%. Given S&W Seed’s higher probable upside, analysts plainly believe S&W Seed is more favorable than Royal Hawaiian Orchards.

Valuation & Earnings

This table compares Royal Hawaiian Orchards and S&W Seed’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Royal Hawaiian Orchards $32.19 million 1.38 $1.18 million N/A N/A
S&W Seed $64.09 million 1.23 -$4.72 million ($0.22) -13.77

Royal Hawaiian Orchards has higher earnings, but lower revenue than S&W Seed.

Summary

Royal Hawaiian Orchards beats S&W Seed on 6 of the 11 factors compared between the two stocks.

Royal Hawaiian Orchards Company Profile

Royal Hawaiian Orchards, L.P. produces, markets, and distributes macadamia nut-based products in the United States. The company operates in two business segments, Orchards and Branded Products. The Orchards segment sells wet-in-shell and dry-in-shell macadamia nuts, and nut kernel. It also provides contract farming services and leases orchards. The Branded Products segment sells bulk kernel under the brand name of ROYAL HAWAIIAN ORCHARDS. The company owns or leases approximately 5,010 tree acres of macadamia orchards in two locations on the island of Hawaii, as well as 641 tree acres to another party. It also farms approximately 433 tree acres of macadamia orchards in Hawaii for other orchard owners. The company was formerly known as ML Macadamia Orchards, L.P. and changed its name to Royal Hawaiian Orchards, L.P. in October 2012. Royal Hawaiian Orchards, L.P. was founded in 1986 and is based in Hilo, Hawaii.

S&W Seed Company Profile

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.

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