Contrasting CHS (NASDAQ:CHSCP) & Local Bounti (NYSE:LOCL)

Local Bounti (NYSE:LOCL) and CHS (NASDAQ:CHSCP) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Analyst Ratings

This is a summary of recent ratings and price targets for Local Bounti and CHS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Local Bounti	1	0	0	0	1.00
CHS	0	0	0	0	0.00

Profitability

This table compares Local Bounti and CHS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Local Bounti	-265.21%	N/A	-28.36%
CHS	1.69%	6.96%	3.06%

Risk & Volatility

Local Bounti has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, CHS has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Insider & Institutional Ownership

28.0% of Local Bounti shares are held by institutional investors. 19.8% of Local Bounti shares are held by company insiders. Comparatively, 2.3% of CHS shares are held 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.

Earnings and Valuation

This table compares Local Bounti and CHS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Local Bounti	$38.14 million	1.46	-$119.90 million	($11.34)	-0.22
CHS	$35.46 billion	N/A	$597.92 million	N/A	N/A

CHS has higher revenue and earnings than Local Bounti.

Summary

CHS beats Local Bounti on 5 of the 9 factors compared between the two stocks.

About Local Bounti

Local Bounti Corporation grows and packs fresh greens in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.

About CHS

CHS Inc., an integrated agricultural company, engages in the provision of grains, food, and energy resources to businesses and consumers worldwide. It is involved in the operation of petroleum refineries and pipelines; the supply, marketing, and distribution of refined fuels; the blending, sale, and distribution of lubricants; and the supply of propane, asphalt, and other natural gas liquids. The company also processes and sells crude oil into refined petroleum products under the Cenex brand name to member cooperatives and other independent retailers through a network of approximately 1,500 sites and provides transportation services. In addition, it processes and markets grains and oilseeds and offers seeds, crop nutrients, crop protection products, animal feed, animal health products, refined and renewable fuels, as well as refined oils, meal, soy flour, and processed sunflower products. Additionally, it produces and distributes edible oil-based products. CHS Inc. was formerly known as Cenex Harvest States Cooperatives and changed its name to CHS Inc. in August 2003. The company was incorporated in 1936 and is based in Inver Grove Heights, Minnesota.