Head-To-Head Comparison: Lavoro (LVRO) and Its Peers

Lavoro (NASDAQ:LVRO) is one of 29 publicly-traded companies in the “Miscellaneous retail” industry, but how does it compare to its competitors? We will compare Lavoro to similar companies based on the strength of its profitability, dividends, earnings, valuation, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Lavoro and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lavoro	$1.79 billion	-$50.50 million	-6.81
Lavoro Competitors	$1.93 billion	$32.37 million	10.80

Lavoro’s competitors have higher revenue and earnings than Lavoro. Lavoro is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Lavoro and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	0	1	2	0	2.67
Lavoro Competitors	120	539	459	6	2.31

Lavoro currently has a consensus target price of $10.83, indicating a potential upside of 62.30%. As a group, “Miscellaneous retail” companies have a potential downside of 2.63%. Given Lavoro’s stronger consensus rating and higher probable upside, research analysts plainly believe Lavoro is more favorable than its competitors.

Volatility and Risk

Lavoro has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Lavoro’s competitors have a beta of 1.09, meaning that their average share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

2.5% of Lavoro shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Miscellaneous retail” companies are owned by institutional investors. 20.2% of shares of all “Miscellaneous retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Lavoro and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	-5.99%	-6.44%	-1.45%
Lavoro Competitors	-23.16%	-42.80%	-4.42%

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 Sao Paulo, Brazil.