Analyzing Adecoagro (AGRO) & Alico (ALCO)

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

Profitability

This table compares Adecoagro and Alico’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adecoagro 1.29% 1.81% 0.71%
Alico -9.44% -2.23% -0.91%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Adecoagro and Alico, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adecoagro 0 2 0 0 2.00
Alico 0 0 0 0 N/A

Adecoagro currently has a consensus price target of $9.00, suggesting a potential upside of 5.63%. Given Adecoagro’s higher probable upside, analysts clearly believe Adecoagro is more favorable than Alico.

Valuation & Earnings

This table compares Adecoagro and Alico’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adecoagro $933.18 million 1.11 $9.97 million $0.08 106.50
Alico $129.83 million 2.03 -$9.45 million N/A N/A

Adecoagro has higher revenue and earnings than Alico.

Volatility and Risk

Adecoagro has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Alico has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Dividends

Alico pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Adecoagro does not pay a dividend.

Institutional & Insider Ownership

36.1% of Adecoagro shares are owned by institutional investors. Comparatively, 74.2% of Alico shares are owned by institutional investors. 60.1% of Alico shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Adecoagro beats Alico on 7 of the 11 factors compared between the two stocks.

Adecoagro Company Profile

Adecoagro S.A., an agricultural company, engages in farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production, and land transformation activities in South America. The company is involved in planting, harvesting, and selling grains, oilseeds, and fibers, including wheat, corn, soybeans, cotton, sunflowers, and others; and providing grain warehousing/conditioning, and handling and drying services to third parties. It also engages in planting, harvesting, processing, and marketing rice; and producing and selling fluid milk and other dairy products. In addition, the company is involved in the cultivation and processing of sugar and ethanol, as well as cogeneration of electricity from sugarcane bagasse; and identification and acquisition of underdeveloped and undermanaged farmland, and realization of value through the strategic disposition of assets. Further, it is involved in leasing approximately 27,216 hectares of pasture land to cattle farmers in Argentina; and coffee plantation in the Rio de Janeiro farm located in Western Bahia to a third party. As of December 31, 2016, the company owned a total of 246,139 hectares, which comprised 19 farms in Argentina, 11 farms in Brazil, and 1 farm in Uruguay; 3 rice processing facilities in Argentina; 2 dairy facilities with approximately 6,880 milking cows in Argentina; 11 grain and rice conditioning and storage plants in Argentina; and 3 sugar and ethanol mills in Brazil with a sugarcane crushing capacity of 11.2 million tons, as well as had a total of 232 MW of installed cogeneration capacity. Adecoagro S.A. was founded in 2002 and is based in Luxembourg.

Alico Company Profile

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates through three segments: Alico Citrus, Conservation and Environmental Resources, and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruits for sale to fresh and processed citrus markets; and contracting for the harvesting, marketing, and hauling of citrus. The Conservation and Environmental Resources segment is involved in the activities related to cattle grazing, sod, native plant, and animal sales; and leasing, management, and/or conservation of unimproved native pasture land. The Other Operations segment engages in the activities related to rock mining royalties, oil exploration, and other lines of business; and ownership and/or lease of improved farmland. Alico, Inc. owned approximately 122,000 acres of land located in 12 counties in Florida, which include the Alachua, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Lee, Martin, Osceola, and Polk. The company was founded in 1960 and is based in Fort Myers, Florida. Alico, Inc. is a subsidiary of 734 Investors, LLC.

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