Critical Analysis: Local Bounti (NYSE:LOCL) versus N2OFF (NASDAQ:NITO)

N2OFF (NASDAQ:NITO) and Local Bounti (NYSE:LOCL) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares N2OFF and Local Bounti’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
N2OFF	-2,422.21%	-196.54%	-142.36%
Local Bounti	-294.95%	N/A	-29.97%

Volatility and Risk

N2OFF has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Local Bounti has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500.

Earnings and Valuation

This table compares N2OFF and Local Bounti”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
N2OFF	$210,000.00	14.48	-$5.19 million	($35.32)	-0.09
Local Bounti	$44.02 million	1.32	-$119.90 million	($14.17)	-0.18

N2OFF has higher earnings, but lower revenue than Local Bounti. Local Bounti is trading at a lower price-to-earnings ratio than N2OFF, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for N2OFF and Local Bounti, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
N2OFF	1	0	0	0	1.00
Local Bounti	1	0	0	0	1.00

Institutional & Insider Ownership

61.2% of N2OFF shares are held by institutional investors. Comparatively, 28.0% of Local Bounti shares are held by institutional investors. 2.5% of N2OFF shares are held by company insiders. Comparatively, 19.8% of Local Bounti shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Local Bounti beats N2OFF on 7 of the 11 factors compared between the two stocks.

About N2OFF

N2OFF, Inc., an agri-food tech company, engages in the development and sale of eco-friendly green solutions for the food industry to enhance food safety and shelf life of fresh produce. Its products are based on proprietary blend of food acids combined with various oxidizing agent-based sanitizers and low concentrated fungicides for cleaning, sanitizing, and controlling pathogens on fresh produce that are safer for human consumption and extend their shelf life by reducing their decay. The company’s products include SavePROTECT or PeroStar, a processing aid for post-harvest application that is added to fruit and vegetable wash water; and SF3HS and SF3H, a post-harvest cleaning and sanitizing solution to control plant and foodborne pathogens. It also offers SpuDefender for controlling post-harvest potato sprouts; and FreshProtect to control spoilage-creating microorganisms on post-harvest citrus fruit. The company was formerly known as Save Foods, Inc. and changed its name to N2OFF, Inc. in March 2024. N2OFF, Inc. was incorporated in 2009 and is headquartered in Hod HaSharon, Israel.

About Local Bounti

Local Bounti Corporation grows and packs fresh greens in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.