Comparing Lavoro (NASDAQ:LVRO) & Archer Daniels Midland (NYSE:ADM)

Lavoro (NASDAQ:LVRO) and Archer Daniels Midland (NYSE:ADM) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Lavoro and Archer Daniels Midland”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$1.89 billion	0.04	-$152.49 million	($1.63)	-0.37
Archer Daniels Midland	$85.53 billion	0.33	$1.80 billion	$2.45	23.78

Archer Daniels Midland has higher revenue and earnings than Lavoro. Lavoro is trading at a lower price-to-earnings ratio than Archer Daniels Midland, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 78.3% of Archer Daniels Midland shares are held by institutional investors. 1.2% of Archer Daniels Midland shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Lavoro and Archer Daniels Midland, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	3	1	0	0	1.25
Archer Daniels Midland	4	4	1	0	1.67

Lavoro currently has a consensus price target of $3.44, suggesting a potential upside of 463.52%. Archer Daniels Midland has a consensus price target of $54.38, suggesting a potential downside of 6.67%. Given Lavoro’s higher probable upside, equities analysts plainly believe Lavoro is more favorable than Archer Daniels Midland.

Volatility & Risk

Lavoro has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Archer Daniels Midland has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Profitability

This table compares Lavoro and Archer Daniels Midland’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	N/A	N/A	N/A
Archer Daniels Midland	1.43%	8.01%	3.40%

Summary

Archer Daniels Midland beats Lavoro on 13 of the 14 factors compared between the two stocks.

About Lavoro

Lavoro Limited operates as an agricultural inputs retailer. The company operates through three segments: Brazil Cluster, LATAM Cluster, and Crop Care Cluster. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. The company also produces specialty fertilizers, crop protection products, and biological crop inputs. It operates in Brazil, Colombia, and Uruguay. The company sells its products through its physical stores and digital channel. Lavoro Limited was founded in 2017 and is headquartered in São Paulo, Brazil.

About Archer Daniels Midland

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company originates, merchandises, stores, and transports agricultural raw materials, such as oilseeds and soft seeds. It also engages in the agricultural commodity and feed product import, export, and distribution; and various structured trade finance activities. In addition, the company offers soybean meal and oil; vegetable and salad oils and protein meals; ingredients for the food, feed, energy, and industrial customers; margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, it provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol, and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; corn germ; and citric acids. Additionally, the company provides proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and food products. It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. The company was founded in 1902 and is headquartered in Chicago, Illinois.