Calavo Growers (NASDAQ:CVGW) and Lavoro (NASDAQ:LVRO) Head to Head Survey

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

Valuation and Earnings

This table compares Lavoro and Calavo Growers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$6.52 billion	0.01	-$466.28 million	($1.57)	-0.20
Calavo Growers	$648.43 million	0.73	$19.80 million	$1.10	24.14

Calavo Growers has lower revenue, but higher earnings than Lavoro. Lavoro is trading at a lower price-to-earnings ratio than Calavo Growers, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 81.3% of Calavo Growers shares are held by institutional investors. 7.2% of Calavo Growers shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Lavoro and Calavo Growers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	3	1	0	0	1.25
Calavo Growers	1	1	1	0	2.00

Lavoro currently has a consensus target price of $3.44, indicating a potential upside of 1,001.76%. Calavo Growers has a consensus target price of $33.50, indicating a potential upside of 26.18%. Given Lavoro’s higher possible upside, equities analysts clearly believe Lavoro is more favorable than Calavo Growers.

Volatility and Risk

Lavoro has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Calavo Growers has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares Lavoro and Calavo Growers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	N/A	N/A	N/A
Calavo Growers	3.05%	13.43%	9.14%

Summary

Calavo Growers beats Lavoro on 11 of the 14 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 Calavo Growers

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates through Grown and Prepared segments. The Grown segment distributes tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Prepared segment is involved in the distribution of prepared avocado products, salsa, fresh-cut fruit and vegetables, fresh prepared entrees salads, wraps, sandwiches, parfaits, and fresh snacking products, as well as ready-to-heat entrees, other hot bars and various deli items, meals kit components, and salad kits. It offers its products under the Calavo brands and related logos; and Avo Fresco, Bueno, Avo Fresco, Bueno, Calavo Gold, Celebrate the Taste, El Dorado, Taste of Paradise, The First Name in Avocados, The Family of Fresh, ProRipeVIP, RIPE NOW!, Renaissance Food Group, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.