Limoneira (NASDAQ:LMNR) vs. Post (NYSE:POST) Financial Analysis

Limoneira (NASDAQ:LMNR) and Post (NYSE:POST) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Limoneira has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Post has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Limoneira	-33.03%	-13.91%	-7.50%
Post	3.48%	13.22%	3.42%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Limoneira	$159.72 million	1.16	-$15.98 million	($2.39)	-4.27
Post	$8.16 billion	0.44	$335.70 million	$5.44	14.63

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Limoneira and Post, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Limoneira	2	0	2	1	2.40
Post	2	2	5	0	2.33

Limoneira currently has a consensus price target of $16.50, indicating a potential upside of 61.61%. Post has a consensus price target of $103.43, indicating a potential upside of 29.99%. Given Limoneira’s stronger consensus rating and higher possible upside, research analysts plainly believe Limoneira is more favorable than Post.

Insider & Institutional Ownership

64.3% of Limoneira shares are held by institutional investors. Comparatively, 94.8% of Post shares are held by institutional investors. 9.2% of Limoneira shares are held by company insiders. Comparatively, 14.1% of Post shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Post beats Limoneira on 11 of the 15 factors compared between the two stocks.

About Limoneira

Limoneira Company is a diversified agribusiness headquartered in Santa Paula, California. Founded in 1893, the company has a long history of growing and marketing citrus and other agricultural products. Its agricultural operations focus on lemons, along with avocados, oranges and specialty citrus. Limoneira farms, packs and markets produce, and also works with third-party growers to supply customers in domestic and international markets. In addition to agriculture, Limoneira has real estate operations that include rental properties and land development.

About Post

Post Holdings, Inc. is a consumer packaged goods company whose businesses make and sell food and related products. Its portfolio includes breakfast cereals and other grain-based foods, refrigerated products, foodservice ingredients, and pet food. Through Post Consumer Brands, the company offers ready-to-eat and hot cereals, including brands such as Honey Bunches of Oats, Pebbles, Grape-Nuts, and Malt-O-Meal. Other businesses include Michael Foods, which supplies eggs and other refrigerated foods, and Weetabix, a cereal company with brands sold in the United Kingdom and other markets.