Alico (ALCO) versus Its Competitors Financial Analysis

Alico (NASDAQ:ALCO) is one of 328 public companies in the “Food Products” industry, but how does it compare to its rivals? We will compare Alico to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Alico and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alico	$44.07 million	-$147.33 million	173.27
Alico Competitors	$6.85 billion	$700.97 million	-2,414.22

Alico’s rivals have higher revenue and earnings than Alico. Alico is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Alico and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alico	8.98%	-20.77%	-11.09%
Alico Competitors	-13.54%	-142.55%	-2.56%

Volatility and Risk

Alico has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Alico’s rivals have a beta of -3.84, indicating that their average stock price is 484% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Alico and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alico	0	1	1	1	3.00
Alico Competitors	2444	8290	8367	401	2.34

Alico currently has a consensus price target of $45.00, indicating a potential upside of 18.05%. As a group, “Food Products” companies have a potential upside of 18.01%. Given Alico’s stronger consensus rating and higher probable upside, research analysts clearly believe Alico is more favorable than its rivals.

Insider and Institutional Ownership

62.3% of Alico shares are held by institutional investors. Comparatively, 39.2% of shares of all “Food Products” companies are held by institutional investors. 6.7% of Alico shares are held by insiders. Comparatively, 19.3% of shares of all “Food Products” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Alico pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Alico pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Food Products” companies pay a dividend yield of 12.4% and pay out 29.5% of their earnings in the form of a dividend. Alico lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Alico beats its rivals on 8 of the 15 factors compared.

About Alico

Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates in two segments, Alico Citrus, and Land Management and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit and value-added services, which include contracting for the harvesting, marketing, and hauling of citrus. The Land Management and Other Operations segment is involved in the activities related to native plant sales, grazing and hunting leasing, management, and/or conservation of unimproved native pastureland; and activities related to rock mining royalties and other insignificant lines of business, as well as in the activities related to owning and/or leasing improved farmland. The company was incorporated in 1960 and is based in Fort Myers, Florida.