Financial Comparison: Mission Produce (NASDAQ:AVO) vs. Adecoagro (NYSE:AGRO)

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

Earnings & Valuation

This table compares Adecoagro and Mission Produce”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adecoagro	$1.43 billion	1.35	-$8.35 million	($0.08)	-168.76
Mission Produce	$1.39 billion	0.65	$37.70 million	$0.46	27.65

Mission Produce has lower revenue, but higher earnings than Adecoagro. Adecoagro 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 Adecoagro and Mission Produce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adecoagro	-0.55%	-1.17%	-0.46%
Mission Produce	2.48%	8.24%	5.00%

Insider & Institutional Ownership

45.3% of Adecoagro shares are owned by institutional investors. Comparatively, 63.6% of Mission Produce shares are owned by institutional investors. 30.9% of Mission Produce shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Adecoagro has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500. Comparatively, Mission Produce has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Adecoagro and Mission Produce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adecoagro	1	5	1	0	2.00
Mission Produce	0	2	3	1	2.83

Adecoagro currently has a consensus price target of $11.53, suggesting a potential downside of 14.57%. Mission Produce has a consensus price target of $17.00, suggesting a potential upside of 33.65%. Given Mission Produce’s stronger consensus rating and higher possible upside, analysts plainly believe Mission Produce is more favorable than Adecoagro.

Summary

Mission Produce beats Adecoagro on 13 of the 15 factors compared between the two stocks.

About Adecoagro

Adecoagro S.A. operates as an agro-industrial company in South America. The company mainly operates through three segments: Farming; Sugar, Ethanol and Energy; and Land Transformation. It engages in farming crops, rice and other agricultural products, dairy operations, and land transformation activities, as well as sugar, ethanol, and energy production activities. The company is involved in the planting, harvesting, and sale of grains, oilseeds, and fibers, including wheat, corn, soybeans, peanuts, cotton, sunflowers, and others; provision of grain warehousing/conditioning, handling, and drying services to third parties; and purchase and sale of crops produced by third parties. It also plants, harvests, processes, and markets rice; and produces and sells raw milk, UHT, cheese, and powder milk. In addition, the company engages in the cultivating and transforming of sugarcane into ethanol, sugar, and electricity. Further, it is involved in the identification and acquisition of underdeveloped and undermanaged farmland, and the realization of value through the strategic disposition of assets. Adecoagro S.A. was founded in 2002 and is based in Luxembourg, Luxembourg.

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.