Critical Analysis: Mission Produce (NASDAQ:AVO) & Cadiz (NASDAQ:CDZI)

Mission Produce (NASDAQ:AVO) and Cadiz (NASDAQ:CDZI) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

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%

Volatility and Risk

Mission Produce has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

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	0.61	$37.70 million	$0.46	25.98
Cadiz	$16.31 million	21.24	-$34.15 million	($0.46)	-8.96

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.

Analyst Ratings

This is a summary 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 presently has a consensus target price of $17.00, suggesting a potential upside of 42.26%. Cadiz has a consensus target price of $10.00, suggesting a potential upside of 142.72%. Given Cadiz’s higher probable upside, analysts clearly believe Cadiz is more favorable than Mission Produce.

Institutional & Insider 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 stock will outperform the market over the long term.

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.