Cadiz (NASDAQ:CDZI) & Mission Produce (NASDAQ:AVO) Critical Review

Cadiz (NASDAQ:CDZI) and Mission Produce (NASDAQ:AVO) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation and Earnings

This table compares Cadiz and Mission Produce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadiz	$16.31 million	21.14	-$34.15 million	($0.48)	-8.58
Mission Produce	$1.39 billion	0.61	$37.70 million	$0.46	25.98

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cadiz and Mission Produce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadiz	2	0	1	0	1.67
Mission Produce	0	2	3	1	2.83

Cadiz currently has a consensus target price of $10.00, suggesting a potential upside of 142.72%. Mission Produce has a consensus target price of $17.00, suggesting a potential upside of 42.26%. Given Cadiz’s higher possible upside, equities analysts clearly believe Cadiz is more favorable than Mission Produce.

Insider and Institutional Ownership

79.8% of Cadiz shares are held by institutional investors. Comparatively, 63.6% of Mission Produce shares are held by institutional investors. 1.7% of Cadiz shares are held by insiders. Comparatively, 30.9% of Mission Produce shares are held by 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.

Profitability

This table compares Cadiz and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadiz	-221.43%	-115.06%	-24.57%
Mission Produce	2.48%	8.24%	5.00%

Volatility & Risk

Cadiz has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Summary

Mission Produce beats Cadiz on 11 of the 15 factors compared between the two stocks.

About Cadiz

Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The company operates through Land and Water Resources; and Water Filtration Technology segments. It offers water supply, water storage, water conveyance, and water filtration services. In addition, the company is involved in the cultivation of grain crops and alfalfa, as well as provides water filtration solutions for impaired or contaminated groundwater sources. It serves public water systems, government agencies, and other clients. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.