Contrasting Adecoagro (NYSE:AGRO) & Farmmi (NASDAQ:FAMI)

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

Risk and Volatility

Farmmi has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Adecoagro has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Farmmi and Adecoagro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmmi	1	0	0	0	1.00
Adecoagro	1	5	1	0	2.00

Adecoagro has a consensus price target of $12.12, indicating a potential upside of 17.35%. Given Adecoagro’s stronger consensus rating and higher possible upside, analysts clearly believe Adecoagro is more favorable than Farmmi.

Institutional & Insider Ownership

0.3% of Farmmi shares are owned by institutional investors. Comparatively, 45.3% of Adecoagro shares are owned by institutional investors. 1.7% of Farmmi shares are owned by company insiders. Comparatively, 6.7% of Adecoagro shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Farmmi and Adecoagro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmmi	$27.97 million	0.10	-$53.10 million	N/A	N/A
Adecoagro	$1.43 billion	1.03	-$8.35 million	$0.02	516.25

Adecoagro has higher revenue and earnings than Farmmi.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmmi	N/A	N/A	N/A
Adecoagro	0.95%	-2.38%	-0.90%

Summary

Adecoagro beats Farmmi on 9 of the 12 factors compared between the two stocks.

About Farmmi

Farmmi, Inc., through its subsidiaries, engages in processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondose, coprinus comatus, and hericium erinaceus, as well as dried edible fungi. It is also involved in trading of cotton, corn, and other agricultural products. The company's products are offered under Lishui Shangeng, Farmmi Liangpin, Forasen, and Puyangtang brands. It offers its products through local distributors to processing manufacturers, supermarkets, restaurants, cafeterias, and local specialty stores. The company was founded in 1994 and is headquartered in Lishui, China.

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.