Analyzing S&W Seed Company (SANW) & Andersons (ANDE)
S&W Seed Company (NASDAQ: SANW) and Andersons (NASDAQ:ANDE) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.
This table compares S&W Seed Company and Andersons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|S&W Seed Company||-0.46%||1.53%||0.76%|
This is a breakdown of recent ratings and target prices for S&W Seed Company and Andersons, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|S&W Seed Company||0||1||3||0||2.75|
S&W Seed Company currently has a consensus price target of $6.00, suggesting a potential upside of 53.85%. Andersons has a consensus price target of $40.50, suggesting a potential upside of 13.45%. Given S&W Seed Company’s stronger consensus rating and higher probable upside, analysts clearly believe S&W Seed Company is more favorable than Andersons.
Earnings and Valuation
This table compares S&W Seed Company and Andersons’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|S&W Seed Company||$92.12 million||0.76||$6.13 million||($0.14)||-27.86|
|Andersons||$3.89 billion||0.26||$111.07 million||$0.82||43.54|
Andersons has higher revenue and earnings than S&W Seed Company. S&W Seed Company is trading at a lower price-to-earnings ratio than Andersons, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
S&W Seed Company has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500. Comparatively, Andersons has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
Andersons pays an annual dividend of $0.64 per share and has a dividend yield of 1.8%. S&W Seed Company does not pay a dividend. Andersons pays out 78.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. S&W Seed Company has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
63.7% of S&W Seed Company shares are owned by institutional investors. Comparatively, 74.2% of Andersons shares are owned by institutional investors. 12.1% of S&W Seed Company shares are owned by company insiders. Comparatively, 6.3% of Andersons shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
S&W Seed Company beats Andersons on 10 of the 17 factors compared between the two stocks.
About S&W Seed Company
S&W Seed Company (S&W) is a global agricultural company. The Company focuses on the breeding, production and sale of alfalfa seed. In addition to its primary activities in alfalfa seed, it also offers hybrid sorghum and sunflower seed germplasm. As of June 30, 2016, the Company sold its alfalfa seed varieties in more than 30 countries across the globe. It also owns and operates seed-cleaning and processing facilities in Five Points, California and Nampa, Idaho and a seed processing facility in Keith, South Australia. Its commercial product line-up includes alfalfa seed varieties that span from Fall Dormancy (FD) 3 to FD 10. Its non-dormant varieties include SW 10, SW 9720, SW 9215, SW 9628 and SW 8421S. Its FD 3, FD 4 and FD 5 S&W varieties are adapted to the winter-hardy intermountain west and the northern half of the United States and Canada. Its FD 3, FD 4 and FD 5 S&W varieties include Rhino, SW4328 and SW5909.
The Andersons, Inc. is a diversified company. The Company conducts business across North America in the grain, ethanol, plant nutrient and rail sectors. The Company also produces turf and cob products, and has a consumer retailing presence. The Company operates through segments, including Grain, Ethanol, Rail, Plant Nutrient and Retail. Its Grain business operates grain elevators in various states in the United States Corn Belt. Its Ethanol Group has ownership interests in over four Limited Liability Companies (the ethanol LLCs or LLCs). Its Plant Nutrient Group is a manufacturer, distributor and retailer of agricultural and related plant nutrients, corncob-based products, and pelleted lime and gypsum products in the United States Corn Belt, Florida and Puerto Rico. Its Rail Group leases, repairs and sells various types of railcars, locomotives and barges. Its Retail Group includes retail stores operated as The Andersons, which are located in the Columbus and Toledo, Ohio markets.
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