Village Farms International (NASDAQ:VFF) and S&W Seed (NASDAQ:SANW) are both small-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.
Risk and Volatility
Village Farms International has a beta of 4.02, meaning that its stock price is 302% more volatile than the S&P 500. Comparatively, S&W Seed has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
Insider & Institutional Ownership
14.2% of Village Farms International shares are held by institutional investors. Comparatively, 75.7% of S&W Seed shares are held by institutional investors. 20.4% of Village Farms International shares are held by insiders. Comparatively, 5.6% of S&W Seed 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.
Profitability
This table compares Village Farms International and S&W Seed's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Village Farms International | -1.66% | -4.93% | -3.55% |
| S&W Seed | -27.01% | -25.28% | -13.21% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Village Farms International and S&W Seed, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Village Farms International | 0 | 1 | 4 | 1 | 3.00 |
| S&W Seed | 0 | 0 | 2 | 0 | 3.00 |
Village Farms International presently has a consensus target price of $23.3333, indicating a potential upside of 109.83%. S&W Seed has a consensus target price of $5.50, indicating a potential upside of 41.75%. Given Village Farms International's higher probable upside, research analysts plainly believe Village Farms International is more favorable than S&W Seed.
Valuation and Earnings
This table compares Village Farms International and S&W Seed's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Village Farms International | $144.57 million | 6.12 | $2.33 million | $0.05 | 222.40 |
| S&W Seed | $79.58 million | 1.71 | $-19,670,000.00 | ($0.55) | -7.05 |
Village Farms International has higher revenue and earnings than S&W Seed. S&W Seed is trading at a lower price-to-earnings ratio than Village Farms International, indicating that it is currently the more affordable of the two stocks.
Summary
Village Farms International beats S&W Seed on 12 of the 14 factors compared between the two stocks.
