Lavoro (NASDAQ:LVRO) and Farmmi (NASDAQ:FAMI) Critical Comparison

Lavoro (NASDAQ:LVRO) and Farmmi (NASDAQ:FAMI) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Institutional & Insider Ownership

2.5% of Lavoro shares are owned by institutional investors. Comparatively, 0.3% of Farmmi shares are owned by institutional investors. 1.7% of Farmmi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Lavoro and Farmmi’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
Farmmi	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Lavoro and Farmmi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	2	1	0	0	1.33
Farmmi	0	0	0	0	0.00

Lavoro presently has a consensus price target of $3.44, suggesting a potential upside of 95.31%. Given Lavoro’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lavoro is more favorable than Farmmi.

Earnings & Valuation

This table compares Lavoro and Farmmi”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$1.89 billion	0.11	-$152.49 million	($1.63)	-1.08
Farmmi	$64.13 million	0.04	-$4.66 million	N/A	N/A

Farmmi has lower revenue, but higher earnings than Lavoro.

Volatility & Risk

Lavoro has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Farmmi has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Summary

Lavoro beats Farmmi on 5 of the 8 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 Farmmi

Farmmi, Inc., through its subsidiaries, engages in processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondose, coprinus comatus, and hericium erinaceus, as well as dried edible fungi. It is also involved in trading of cotton, corn, and other agricultural products. The company's products are offered under Lishui Shangeng, Farmmi Liangpin, Forasen, and Puyangtang brands. It offers its products through local distributors to processing manufacturers, supermarkets, restaurants, cafeterias, and local specialty stores. The company was founded in 1994 and is headquartered in Lishui, China.