Comparing Davis Commodities (NASDAQ:DTCK) and Adecoagro (NYSE:AGRO)

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

Volatility and Risk

Davis Commodities has a beta of -1.42, indicating that its stock price is 242% less volatile than the S&P 500. Comparatively, Adecoagro has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Earnings and Valuation

This table compares Davis Commodities and Adecoagro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Davis Commodities	$132.37 million	0.15	-$3.53 million	N/A	N/A
Adecoagro	$1.55 billion	0.49	$92.34 million	$0.35	21.76

Adecoagro has higher revenue and earnings than Davis Commodities.

Insider and Institutional Ownership

81.8% of Davis Commodities shares are owned by institutional investors. Comparatively, 45.3% of Adecoagro shares are owned by institutional investors. 6.7% of Adecoagro shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Davis Commodities and Adecoagro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Davis Commodities	0	0	0	0	0.00
Adecoagro	3	1	0	0	1.25

Adecoagro has a consensus price target of $9.60, suggesting a potential upside of 26.07%. Given Adecoagro’s stronger consensus rating and higher probable upside, analysts clearly believe Adecoagro is more favorable than Davis Commodities.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Davis Commodities	N/A	N/A	N/A
Adecoagro	2.30%	3.24%	1.43%

Summary

Adecoagro beats Davis Commodities on 10 of the 11 factors compared between the two stocks.

About Davis Commodities

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. Davis Commodities Limited was founded in 1999 and is headquartered in Singapore. The company operates as a subsidiary of Davis & KT Holdings Pte. Ltd.

About Adecoagro

Adecoagro S.A. operates as an agro-industrial company in South America. The company mainly operates through three segments: Farming; Sugar, Ethanol and Energy; and Land Transformation. It engages in farming crops, rice and other agricultural products, dairy operations, and land transformation activities, as well as sugar, ethanol, and energy production activities. The company is involved in the planting, harvesting, and sale of grains, oilseeds, and fibers, including wheat, corn, soybeans, peanuts, cotton, sunflowers, and others; provision of grain warehousing/conditioning, handling, and drying services to third parties; and purchase and sale of crops produced by third parties. It also plants, harvests, processes, and markets rice; and produces and sells raw milk, UHT, cheese, and powder milk. In addition, the company engages in the cultivating and transforming of sugarcane into ethanol, sugar, and electricity. Further, it is involved in the identification and acquisition of underdeveloped and undermanaged farmland, and the realization of value through the strategic disposition of assets. Adecoagro S.A. was founded in 2002 and is based in Luxembourg, Luxembourg.