Limoneira (LMNR) versus Landec Corporation (NASDAQ:LNDC) Critical Analysis

Limoneira (NASDAQ: LMNR) and Landec Corporation (NASDAQ:LNDC) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitabiliy, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

25.6% of Limoneira shares are owned by institutional investors. Comparatively, 92.1% of Landec Corporation shares are owned by institutional investors. 5.7% of Limoneira shares are owned by company insiders. Comparatively, 4.9% of Landec Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Limoneira has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Landec Corporation has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares Limoneira and Landec Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Limoneira $124.42 million 2.65 $22.57 million $0.78 29.32
Landec Corporation $540.14 million 0.66 $33.20 million $0.39 33.33

Landec Corporation has higher revenue and earnings than Limoneira. Limoneira is trading at a lower price-to-earnings ratio than Landec Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Limoneira and Landec Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Limoneira 9.82% 9.09% 3.71%
Landec Corporation 1.99% 4.81% 3.08%

Analyst Ratings

This is a summary of recent recommendations for Limoneira and Landec Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limoneira 0 0 2 0 3.00
Landec Corporation 0 1 1 0 2.50

Limoneira presently has a consensus price target of $26.25, suggesting a potential upside of 14.78%. Landec Corporation has a consensus price target of $13.00, suggesting a potential upside of 0.00%. Given Limoneira’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Limoneira is more favorable than Landec Corporation.

Dividends

Limoneira pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Landec Corporation does not pay a dividend. Limoneira pays out 28.2% of its earnings in the form of a dividend.

Summary

Limoneira beats Landec Corporation on 10 of the 16 factors compared between the two stocks.

Limoneira Company Profile

Limoneira Company is engaged in agribusiness and real estate development. The Company’s operations consist of fruit production, sales and marketing, rental operations, real estate development and capital investment activities. The Company’s segments include lemon operations, other agribusiness, rental operations and real estate development. The Company has three business divisions: agribusiness, rental operations and real estate development. The Company operates its packinghouses in Santa Paula, California and Yuma, Arizona. The Company’s water resources include water rights, usage rights and pumping rights to the water in aquifers. The Company’s agribusiness includes farming, harvesting, lemon packing and lemon sales operations. The rental operations division includes residential and commercial rentals, leased land operations and organic recycling. The real estate development division includes developable land parcels, multi-family housing and single-family homes.

Landec Corporation Company Profile

Landec Corporation designs, develops, manufactures and sells a range of health and wellness products for food and biomaterials markets. The Company licenses technology applications to partners. The Company operates through three segments: Packaged Fresh Vegetables, Food Export and Biomaterials. The Packaged Fresh Vegetables segment markets and packs specialty packaged whole and fresh-cut fruit and vegetables, the majority of which incorporate the BreatheWay specialty packaging for the retail grocery, club store and food services industry. The Food Export segment is engaged in the purchase and sale of whole commodity fruit and vegetable products primarily to Asia. The Biomaterials segment sells products utilizing hyaluronan, a polysaccharide that is distributed in the extracellular matrix of connective tissues in both animals and humans, and non-hyaluronan (HA) products for medical use primarily in the ophthalmic, orthopedic and other markets.

Receive News & Ratings for Limoneira Co Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Limoneira Co and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply