Contrasting Universal (NYSE:UVV) and 22nd Century Group (NASDAQ:XXII)

22nd Century Group (NASDAQ:XXII) and Universal (NYSE:UVV) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares 22nd Century Group and Universal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
22nd Century Group	-27.04%	-69.55%	-42.91%
Universal	0.67%	3.50%	1.74%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for 22nd Century Group and Universal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
22nd Century Group	1	0	0	0	1.00
Universal	0	2	0	0	2.00

Risk and Volatility

22nd Century Group has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Universal has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Institutional and Insider Ownership

18.1% of 22nd Century Group shares are owned by institutional investors. Comparatively, 81.0% of Universal shares are owned by institutional investors. 0.0% of 22nd Century Group shares are owned by company insiders. Comparatively, 2.2% of Universal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares 22nd Century Group and Universal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
22nd Century Group	$6.06 million	0.35	-$5.05 million	($4,365.27)	-0.00
Universal	$2.92 billion	0.38	$32.64 million	$0.77	57.43

Universal has higher revenue and earnings than 22nd Century Group. 22nd Century Group is trading at a lower price-to-earnings ratio than Universal, indicating that it is currently the more affordable of the two stocks.

Summary

Universal beats 22nd Century Group on 11 of the 12 factors compared between the two stocks.

About 22nd Century Group

22nd Century Group, Inc., a tobacco products company, engages in the sale and distribution of its own proprietary new reduced nicotine tobacco products. The company offers reduced nicotine content tobacco plants and very low nicotine combustible cigarette products. It also provides contract manufacturing services for conventional combustible tobacco products for third-party brands. The company was founded in 1998 and is headquartered in Mocksville, North Carolina.

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.