Lavoro (NASDAQ:LVRO) versus Mission Produce (NASDAQ:AVO) Head-To-Head Contrast

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lavoro and Mission Produce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	3	1	0	0	1.25
Mission Produce	0	2	3	1	2.83

Lavoro presently has a consensus target price of $3.44, indicating a potential upside of 1,030.76%. Mission Produce has a consensus target price of $17.00, indicating a potential upside of 29.83%. Given Lavoro’s higher possible upside, analysts plainly believe Lavoro is more favorable than Mission Produce.

Risk and Volatility

Lavoro has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lavoro and Mission Produce”s gross revenue, earnings per share 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)	-0.19
Mission Produce	$1.34 billion	0.69	$37.70 million	$0.46	28.47

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

Profitability

This table compares Lavoro and Mission Produce’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
Mission Produce	2.48%	8.24%	5.00%

Institutional and Insider Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 63.6% of Mission Produce shares are held by institutional investors. 30.9% of Mission Produce shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Mission Produce beats Lavoro on 13 of the 15 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 Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.