Lavoro (NASDAQ:LVRO) and Mission Produce (NASDAQ:AVO) Head to Head Comparison

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

Valuation & Earnings

This table compares Lavoro and Mission Produce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$6.52 billion	0.01	-$466.28 million	($1.57)	-0.19
Mission Produce	$1.34 billion	0.69	$37.70 million	$0.46	28.47

Mission Produce has lower revenue, but higher earnings than Lavoro. Lavoro 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 Recommendations

This is a breakdown of recent recommendations for Lavoro and Mission Produce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	3	1	0	0	1.25
Mission Produce	0	2	3	1	2.83

Lavoro currently has a consensus price target of $3.44, suggesting a potential upside of 1,030.76%. Mission Produce has a consensus price target of $17.00, suggesting a potential upside of 29.83%. Given Lavoro’s higher possible upside, equities analysts clearly believe Lavoro is more favorable than Mission Produce.

Profitability

This table compares Lavoro and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	N/A	N/A	N/A
Mission Produce	2.48%	8.24%	5.00%

Institutional and Insider Ownership

2.5% of Lavoro shares are owned by institutional investors. Comparatively, 63.6% of Mission Produce shares are owned by institutional investors. 30.9% of Mission Produce shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Lavoro has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

Mission Produce beats Lavoro on 13 of the 15 factors compared between the two stocks.

About Lavoro

Lavoro Limited operates as an agricultural inputs retailer. The company operates through three segments: Brazil Cluster, LATAM Cluster, and Crop Care Cluster. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. The company also produces specialty fertilizers, crop protection products, and biological crop inputs. It operates in Brazil, Colombia, and Uruguay. The company sells its products through its physical stores and digital channel. Lavoro Limited was founded in 2017 and is headquartered in São Paulo, Brazil.

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.