Analyzing Forafric Global (NASDAQ:AFRI) and Calavo Growers (NASDAQ:CVGW)

Forafric Global (NASDAQ:AFRI) and Calavo Growers (NASDAQ:CVGW) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Forafric Global has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Calavo Growers has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Earnings & Valuation

This table compares Forafric Global and Calavo Growers”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forafric Global	$274.22 million	0.96	-$24.33 million	N/A	N/A
Calavo Growers	$693.71 million	0.53	-$1.08 million	$0.88	23.31

Calavo Growers has higher revenue and earnings than Forafric Global.

Profitability

This table compares Forafric Global and Calavo Growers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forafric Global	N/A	N/A	N/A
Calavo Growers	2.28%	11.73%	7.86%

Analyst Ratings

This is a summary of recent recommendations and price targets for Forafric Global and Calavo Growers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forafric Global	1	0	0	0	1.00
Calavo Growers	0	2	1	0	2.33

Calavo Growers has a consensus target price of $40.00, suggesting a potential upside of 95.03%. Given Calavo Growers’ stronger consensus rating and higher possible upside, analysts clearly believe Calavo Growers is more favorable than Forafric Global.

Insider & Institutional Ownership

5.5% of Forafric Global shares are owned by institutional investors. Comparatively, 81.3% of Calavo Growers shares are owned by institutional investors. 13.5% of Forafric Global shares are owned by company insiders. Comparatively, 7.2% of Calavo Growers shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Calavo Growers beats Forafric Global on 10 of the 12 factors compared between the two stocks.

About Forafric Global

Forafric Global PLC engages in the purchase, storage, transport, processing, and sale of agricultural commodities and commodity products in Morocco, Burkina, Mali, Angola, and internationally. The company provides wheat flours and semolina; and secondary processing products, such as pasta and couscous under the TRIA and MayMouna brand names. It serves wholesale foods manufacturers and distributors. The company also exports its products to approximately 45 countries. Forafric Global PLC was founded in 1926 and is headquartered in Gibraltar.

About Calavo Growers

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates through Grown and Prepared segments. The Grown segment distributes tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Prepared segment is involved in the distribution of prepared avocado products, salsa, fresh-cut fruit and vegetables, fresh prepared entrees salads, wraps, sandwiches, parfaits, and fresh snacking products, as well as ready-to-heat entrees, other hot bars and various deli items, meals kit components, and salad kits. It offers its products under the Calavo brands and related logos; and Avo Fresco, Bueno, Avo Fresco, Bueno, Calavo Gold, Celebrate the Taste, El Dorado, Taste of Paradise, The First Name in Avocados, The Family of Fresh, ProRipeVIP, RIPE NOW!, Renaissance Food Group, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.