Head-To-Head Comparison: Cadiz (CDZI) vs. Pure Cycle (PCYO)

Cadiz (NASDAQ: CDZI) and Pure Cycle (NASDAQ:PCYO) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares Cadiz and Pure Cycle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cadiz -7,600.70% N/A -48.23%
Pure Cycle -40.09% -1.54% -1.51%

Analyst Ratings

This is a summary of current ratings and target prices for Cadiz and Pure Cycle, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cadiz 0 0 1 0 3.00
Pure Cycle 0 0 0 0 N/A

Cadiz presently has a consensus price target of $18.00, indicating a potential upside of 39.00%. Given Cadiz’s higher probable upside, equities research analysts plainly believe Cadiz is more favorable than Pure Cycle.

Insider & Institutional Ownership

48.4% of Cadiz shares are held by institutional investors. Comparatively, 66.3% of Pure Cycle shares are held by institutional investors. 5.6% of Cadiz shares are held by insiders. Comparatively, 4.8% of Pure Cycle 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.

Valuation and Earnings

This table compares Cadiz and Pure Cycle’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cadiz $440,000.00 689.29 -$33.86 million N/A N/A
Pure Cycle $1.22 million 189.89 -$1.71 million N/A N/A

Pure Cycle has higher revenue and earnings than Cadiz.

Risk and Volatility

Cadiz has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Pure Cycle has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Summary

Cadiz beats Pure Cycle on 6 of the 11 factors compared between the two stocks.

Cadiz Company Profile

Cadiz Inc. operates as a land and water resource development company in the United States. It engages in the water resource, and land and agricultural development activities in San Bernardino County properties. The company owns approximately 34,500 acres of land in the Cadiz and Fenner valleys of eastern San Bernardino County; and approximately 11,000 acres of land in the eastern Mojave Desert portion of San Bernardino County. It is also involved in the cultivation of lemons and grapes/raisins, and spring and fall plantings of vegetables on the Cadiz Valley properties. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.

Pure Cycle Company Profile

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. It provides water production, storage, treatment, retail distribution systems bulk transmission, wastewater collection and treatment, irrigation water treatment and transmission, construction management, billing and collection, and emergency response services. The company offers its services to wholesale customers, which include commercial and industrial customers, and local governmental entities that provide water and wastewater services to their end-use customers. It also leases its farms. The company was founded in 1976 and is based in Watkins, Colorado.

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