Shineco (NASDAQ:TYHT) and Limoneira (NASDAQ:LMNR) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Shineco and Limoneira, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shineco 0 0 0 0 N/A
Limoneira 0 0 5 0 3.00

Limoneira has a consensus price target of $30.20, indicating a potential upside of 20.03%. Given Limoneira’s higher possible upside, analysts clearly believe Limoneira is more favorable than Shineco.

Risk & Volatility

Shineco has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Limoneira has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares Shineco and Limoneira’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shineco $43.90 million 0.41 $7.58 million N/A N/A
Limoneira $121.31 million 3.66 $6.59 million $0.42 59.90

Shineco has higher earnings, but lower revenue than Limoneira.

Dividends

Limoneira pays an annual dividend of $0.25 per share and has a dividend yield of 1.0%. Shineco does not pay a dividend. Limoneira pays out 59.5% of its earnings in the form of a dividend. Limoneira has raised its dividend for 4 consecutive years.

Profitability

This table compares Shineco and Limoneira’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shineco 17.29% 12.89% 11.52%
Limoneira 15.91% 6.46% 2.93%

Institutional & Insider Ownership

0.9% of Shineco shares are held by institutional investors. Comparatively, 41.7% of Limoneira shares are held by institutional investors. 20.3% of Shineco shares are held by company insiders. Comparatively, 4.5% of Limoneira 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

Limoneira beats Shineco on 8 of the 15 factors compared between the two stocks.

Shineco Company Profile

Shineco, Inc., through its subsidiaries, produces, distributes, and sells health and well-being focused plant-based products in China. It processes and distributes traditional Chinese herbal medicine products, as well as other pharmaceutical products directly to individual customers. The company also plants, processes, and distributes green and organic agricultural produce; and grows, cultivates, and sells yew trees that are used for the production of anti-cancer medication, as well as ornamental bonsai trees for purifying indoor air quality. In addition, it offers domestic and international logistics services for agricultural products. Further, the company develops and distributes specialized fabrics, textiles, health supplements, and other byproducts derived from an indigenous Chinese plant Apocynum Venetum. It also sells its products online through third party e-commerce Websites. The company was formerly known as Beijing Tenet Jove Technological Development Co., Ltd. and changed its name to Shineco, Inc. in June 2005. Shineco, Inc. was founded in 1997 and is based in Beijing, China.

Limoneira Company Profile

Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally. The company operates through six segments: Fresh Lemons, Lemon Packing, Avocados, Other Agribusiness, Rental Operations, and Real Estate Development. The Fresh Lemons segment markets and sells lemons directly to food service, wholesale, and retail customers. It has approximately 4,800 acres of lemons. The Lemon Packing segment engages in lemon packing, and shipping and handling activities. This segment also processes, packs, and sells lemons grown by others. The Avocados segment grows avocados. This segment has approximately 900 acres of avocados. The Other Agribusiness segment grows oranges and specialty citrus; and other crops, including Moro blood oranges, Cara Cara oranges, Minneola tangelos, Star Ruby grapefruit, pummelos, pistachios, and wine grapes. This segment has approximately 1,500 acres of oranges; and approximately 1,000 acres of specialty citrus and other crops. The Rental Operations segment owns and maintains approximately 245 residential housing units; and commercial properties, such as office buildings and a multi-use facility, as well as leases approximately 500 acres of its land to third-party agricultural tenants. It is also involved in organic recycling operations. The Real Estate Development segment develops parcels, multi-family housing, and single-family homes. The company has its agricultural plantings in Ventura, Tulare, San Bernardino, and San Luis Obispo counties in California; Yuma county in Arizona; and La Serena, Chile. Limoneira Company markets and sells its lemons directly to food service, wholesale, and retail customers; avocados to a packing and marketing company; oranges, specialty citrus, and other crops through Sunkist and other packinghouses; and wine grapes to wine producers. The company was founded in 1893 and is headquartered in Santa Paula, California.

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