San Miguel Food and Beverage (OTCMKTS:SMPFF) vs. Alico (NASDAQ:ALCO) Critical Analysis

San Miguel Food and Beverage (OTCMKTS:SMPFF) and Alico (NASDAQ:ALCO) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

62.3% of Alico shares are held by institutional investors. 6.7% of Alico shares are held 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for San Miguel Food and Beverage and Alico, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
San Miguel Food and Beverage	0	0	0	0	0.00
Alico	0	2	1	0	2.33

Alico has a consensus target price of $45.00, suggesting a potential upside of 8.23%. Given Alico’s stronger consensus rating and higher probable upside, analysts plainly believe Alico is more favorable than San Miguel Food and Beverage.

Profitability

This table compares San Miguel Food and Beverage and Alico’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
San Miguel Food and Beverage	N/A	N/A	N/A
Alico	8.98%	-20.68%	-11.09%

Earnings & Valuation

This table compares San Miguel Food and Beverage and Alico”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
San Miguel Food and Beverage	N/A	N/A	N/A	$24.25	0.03
Alico	$17.07 million	18.07	-$147.33 million	$0.22	189.00

San Miguel Food and Beverage has higher earnings, but lower revenue than Alico. San Miguel Food and Beverage is trading at a lower price-to-earnings ratio than Alico, indicating that it is currently the more affordable of the two stocks.

Dividends

San Miguel Food and Beverage pays an annual dividend of $2.30 per share and has a dividend yield of 286.8%. Alico pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. San Miguel Food and Beverage pays out 9.5% of its earnings in the form of a dividend. Alico pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. San Miguel Food and Beverage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Alico beats San Miguel Food and Beverage on 8 of the 13 factors compared between the two stocks.

About San Miguel Food and Beverage

San Miguel Food and Beverage, Inc. provides processed meat products. The Food segment offers refrigerated processed and canned meat products under the Purefoods, Purefoods Tender Juicy, Star, Higante, Purefoods Beefies, Vida, Purefoods Nuggets, Veega, Purefoods Ready-to-Eat, Ulam King, and San Miguel Del Mar brands; butter, margarine, cheese, milk, ice cream, jelly snacks and desserts, specialty oils, salad aids, snacks, and condiments under the Magnolia, Dari Crème, Star, and Cheezee brands; flour mixes; coffee and related products; feeds under the B-Meg, B-Meg Premium, Integra, Expert, Dynamix, Essential, Pureblend, Bonanza, Jumbo, and Nutri Chunks brands; poultry and fresh meat under the Magnolia, Magnolia Chicken Stations, and Monterey brands; and flour and bakery ingredients, as well as poultry and livestock farming, grain terminal handling, franchising, and food services. The Beer and NAB segment provides fermented, malt-based, and non-alcoholic beverages. It offers beer under the San Miguel Pale Pilsen, Red Horse, Red Horse Super, San Mig Light, San Miguel Flavored Beer, San Miguel Super Dry, San Miguel Premium All-Malt, Cerveza Negra, San Mig Zero, San Mig Free, Gold Eagle, and San Miguel Cerveza Blanca brands; ready-to-drink tea under the Magnolia Healthtea brand; ready-to-drink juice under the Magnolia Fruit Drink brand; and sparkling malt-based non-alcoholic drink under the Cali brand. This segment also offers its products under the Valor, Blue Ice, Dragon, W1N Bia, Anker, Kuda Putih, Bruck, Knight, Hard Seltzer, and San Mig Cola brands. The Spirits segment provides gin, Chinese wine, brandy, rum, vodka, and other hard liquor under the Ginebra San Miguel, Vino Kulafu, Ginebra San Miguel Premium Gin Black, and Tondeña Manila Rum brands; and disinfectant alcohol under the San Miguel Ethyl Alcohol brand. The company was founded in 1890 and is based in Pasig, the Philippines. San Miguel Food and Beverage, Inc. is a subsidiary of San Miguel Corporation.

About Alico

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates in two segments, Alico Citrus, and Land Management and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit and value-added services, which include contracting for the harvesting, marketing, and hauling of citrus. The Land Management and Other Operations segment is involved in the activities related to native plant sales, grazing and hunting leasing, management, and/or conservation of unimproved native pastureland; and activities related to rock mining royalties and other insignificant lines of business, as well as in the activities related to owning and/or leasing improved farmland. The company was incorporated in 1960 and is based in Fort Myers, Florida.