Financial Review: Local Bounti (LOCL) vs. Its Rivals

Local Bounti (NYSE:LOCL) is one of 328 public companies in the “Food Products” industry, but how does it weigh in compared to its peers? We will compare Local Bounti to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Valuation & Earnings

This table compares Local Bounti and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Local Bounti	$48.37 million	-$94.38 million	-0.28
Local Bounti Competitors	$6.83 billion	$700.98 million	-2,412.57

Local Bounti’s peers have higher revenue and earnings than Local Bounti. Local Bounti is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Local Bounti has a beta of 2.88, suggesting that its share price is 188% more volatile than the S&P 500. Comparatively, Local Bounti’s peers have a beta of -3.84, suggesting that their average share price is 484% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Local Bounti and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Local Bounti	1	0	0	0	1.00
Local Bounti Competitors	2450	8302	8384	404	2.35

As a group, “Food Products” companies have a potential upside of 16.23%. Given Local Bounti’s peers stronger consensus rating and higher probable upside, analysts plainly believe Local Bounti has less favorable growth aspects than its peers.

Institutional & Insider Ownership

28.0% of Local Bounti shares are held by institutional investors. Comparatively, 39.0% of shares of all “Food Products” companies are held by institutional investors. 14.2% of Local Bounti shares are held by insiders. Comparatively, 19.0% of shares of all “Food Products” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Local Bounti and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Local Bounti	-130.52%	N/A	-16.45%
Local Bounti Competitors	-12.77%	-127.74%	-2.01%

Summary

Local Bounti peers beat Local Bounti on 10 of the 13 factors compared.

About Local Bounti

Local Bounti Corporation was an indoor agriculture company that used controlled-environment farming to grow fresh produce year-round. Its operations were designed to use hydroponic systems and indoor growing environments, helping provide consistent growing conditions while reducing the distance between farms and consumers. The company produced and marketed leafy greens, lettuce, herbs and other fresh vegetables under the Local Bounti brand. Its products were distributed through retail and food-service channels, with a focus on serving customers in regional markets from its indoor farms in the United States.