FMC (NYSE:FMC) vs. Lavoro (NASDAQ:LVRO) Critical Comparison

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

Valuation and Earnings

This table compares Lavoro and FMC”s top-line 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
FMC	$3.47 billion	0.42	-$2.24 billion	($19.98)	-0.58

Lavoro has higher revenue and earnings than FMC. FMC is trading at a lower price-to-earnings ratio than Lavoro, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.5% of Lavoro shares are owned by institutional investors. Comparatively, 91.9% of FMC shares are owned by institutional investors. 0.8% of FMC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Lavoro has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, FMC has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Profitability

This table compares Lavoro and FMC’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
FMC	-72.93%	10.53%	2.95%

Analyst Recommendations

This is a summary of current ratings for Lavoro and FMC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	1	1	0	0	1.50
FMC	3	9	2	0	1.93

Lavoro currently has a consensus target price of $2.25, suggesting a potential upside of 640.13%. FMC has a consensus target price of $20.46, suggesting a potential upside of 75.76%. Given Lavoro’s higher probable upside, research analysts clearly believe Lavoro is more favorable than FMC.

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 FMC

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.