Financial Analysis: BellRing Brands (NYSE:BRBR) & Alico (NASDAQ:ALCO)

BellRing Brands (NYSE:BRBR) and Alico (NASDAQ:ALCO) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Profitability

This table compares BellRing Brands and Alico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BellRing Brands	7.28%	-33.04%	15.63%
Alico	8.98%	-20.77%	-11.09%

Risk and Volatility

BellRing Brands has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Alico has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares BellRing Brands and Alico”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BellRing Brands	$2.32 billion	0.46	$216.20 million	$1.42	6.46
Alico	$44.07 million	6.24	-$147.33 million	$0.22	168.59

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

Analyst Ratings

This is a breakdown of current recommendations for BellRing Brands and Alico, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BellRing Brands	2	7	10	0	2.42
Alico	0	1	1	1	3.00

BellRing Brands presently has a consensus price target of $18.57, suggesting a potential upside of 102.36%. Alico has a consensus price target of $45.00, suggesting a potential upside of 21.33%. Given BellRing Brands’ higher possible upside, research analysts plainly believe BellRing Brands is more favorable than Alico.

Institutional and Insider Ownership

95.0% of BellRing Brands shares are owned by institutional investors. Comparatively, 62.3% of Alico shares are owned by institutional investors. 1.5% of BellRing Brands shares are owned by insiders. Comparatively, 6.7% of Alico shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Alico beats BellRing Brands on 8 of the 15 factors compared between the two stocks.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.

About Alico

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates in two segments, Alico Citrus, and Land Management and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit and value-added services, which include contracting for the harvesting, marketing, and hauling of citrus. The Land Management and Other Operations segment is involved in the activities related to native plant sales, grazing and hunting leasing, management, and/or conservation of unimproved native pastureland; and activities related to rock mining royalties and other insignificant lines of business, as well as in the activities related to owning and/or leasing improved farmland. The company was incorporated in 1960 and is based in Fort Myers, Florida.