Head-To-Head Contrast: Adecoagro (AGRO) & Alico (ALCO)

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

Dividends

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Alico pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Adecoagro does not pay a dividend.

Volatility & Risk

Adecoagro has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Alico has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Earnings & Valuation

This table compares Adecoagro and Alico’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adecoagro	$933.18 million	1.09	$9.97 million	$0.08	105.00
Alico	$129.83 million	2.01	-$9.45 million	N/A	N/A

Adecoagro has higher revenue and earnings than Alico.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Adecoagro and Alico, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adecoagro	0	2	1	0	2.33
Alico	0	0	0	0	N/A

Adecoagro currently has a consensus price target of $9.00, suggesting a potential upside of 7.14%. Given Adecoagro’s higher probable upside, analysts plainly believe Adecoagro is more favorable than Alico.

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%

Institutional and Insider Ownership

36.1% of Adecoagro shares are held by institutional investors. Comparatively, 74.2% of Alico shares are held by institutional investors. 60.1% of Alico 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.

Summary

Adecoagro beats Alico on 8 of the 12 factors compared between the two stocks.

About Adecoagro

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.

About Alico

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.