Analyzing Davis Commodities (NASDAQ:DTCK) & SunOpta (NASDAQ:STKL)

Davis Commodities (NASDAQ:DTCK) and SunOpta (NASDAQ:STKL) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Davis Commodities and SunOpta, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Davis Commodities	0	0	0	0	N/A
SunOpta	0	0	4	0	3.00

SunOpta has a consensus target price of $9.00, suggesting a potential upside of 82.56%. Given SunOpta’s higher possible upside, analysts clearly believe SunOpta is more favorable than Davis Commodities.

Valuation & Earnings

This table compares Davis Commodities and SunOpta’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Davis Commodities	$206.72 million	0.14	N/A	N/A	N/A
SunOpta	$934.66 million	0.62	-$4.84 million	($1.42)	-3.47

Davis Commodities has higher earnings, but lower revenue than SunOpta.

Insider and Institutional Ownership

97.5% of SunOpta shares are owned by institutional investors. 5.8% of SunOpta shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Davis Commodities and SunOpta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Davis Commodities	N/A	N/A	N/A
SunOpta	-20.14%	2.18%	0.73%

Summary

SunOpta beats Davis Commodities on 8 of the 9 factors compared between the two stocks.

About Davis Commodities

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill, Lin, and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. The company was founded in 1999 and is headquartered in Singapore. Davis Commodities Limited operates as a subsidiary of Davis & KT Holdings Pte. Ltd.

About SunOpta

SunOpta Inc. engages in manufacture and sale of plant-based and fruit-based food and beverage products to retailers, foodservice operators, branded food companies, and food manufacturers in the United States, Canada, and internationally. The company operates through Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages segments. The Plant-Based Foods and Beverages segment provides plant-based beverages, and liquid and powder ingredients that utilizes almond, soy, coconut, rice, oat, hemp, and other bases, as well as broths, teas, and nutritional beverages. The Fruit-Based Foods and Beverages segment offers individually quick frozen (IQF) fruits, such as strawberries, mangoes, blueberries, pineapples, blends, and other berries for retail; and IQF and bulk frozen fruits, including purées, toppings, and smoothies for foodservice, and custom fruit preparations for industrial use. This segment also provides fruit snacks comprising bars, twists, ropes, and bite-sized products. The company was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in October 2003. SunOpta Inc. was incorporated in 1973 and is headquartered in Eden Prairie, Minnesota.