Pyxus International (OTCMKTS:PYYX) & 22nd Century Group (NASDAQ:XXII) Critical Analysis

22nd Century Group (NASDAQ:XXII) and Pyxus International (OTCMKTS:PYYX) 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 valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

22nd Century Group has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Pyxus International has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
22nd Century Group	-27.04%	-69.37%	-44.30%
Pyxus International	0.99%	13.69%	1.22%

Insider and Institutional Ownership

18.1% of 22nd Century Group shares are owned by institutional investors. 0.0% of 22nd Century Group shares are owned by company insiders. Comparatively, 10.0% of Pyxus International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for 22nd Century Group and Pyxus International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
22nd Century Group	1	0	0	0	1.00
Pyxus International	0	0	0	0	0.00

Earnings and Valuation

This table compares 22nd Century Group and Pyxus International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
22nd Century Group	$17.59 million	0.11	-$5.05 million	($434.84)	-0.01
Pyxus International	$2.41 billion	0.03	$14.57 million	$0.89	3.65

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

Summary

Pyxus International beats 22nd Century Group on 8 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 Pyxus International

Pyxus International, Inc., an agricultural company, offers value-added products and services to businesses and customers. It also involved in the purchasing, processing, packing, storing, and shipping tobacco to manufacturers of cigarettes and other consumer tobacco products. The company offers its products in China, the United States, the United Arab Emirates, Indonesia, Russia, Northern Africa, and internationally. The company was formerly known as Old Holdco, Inc. Pyxus International, Inc. was founded in 1873 and is headquartered in Morrisville, North Carolina.