Reviewing Pinnacle Food Group (NASDAQ:PFAI) and Mission Produce (NASDAQ:AVO)

Mission Produce (NASDAQ:AVO) and Pinnacle Food Group (NASDAQ:PFAI) 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 valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

63.6% of Mission Produce shares are held by institutional investors. 35.4% of Mission Produce shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Mission Produce and Pinnacle Food Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Produce	$1.23 billion	0.68	$36.70 million	$0.54	21.87
Pinnacle Food Group	$3.29 million	9.60	$290,000.00	N/A	N/A

Mission Produce has higher revenue and earnings than Pinnacle Food Group.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mission Produce and Pinnacle Food Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Produce	0	1	2	1	3.00
Pinnacle Food Group	1	0	0	0	1.00

Mission Produce currently has a consensus price target of $17.00, indicating a potential upside of 43.95%. Given Mission Produce’s stronger consensus rating and higher probable upside, analysts plainly believe Mission Produce is more favorable than Pinnacle Food Group.

Profitability

This table compares Mission Produce and Pinnacle Food Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Produce	2.73%	7.89%	4.65%
Pinnacle Food Group	N/A	N/A	N/A

Summary

Mission Produce beats Pinnacle Food Group on 11 of the 12 factors compared between the two stocks.

About Mission Produce

Mission Produce, Inc. engages in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, distributors, and foodservice customers in the United States and internationally. The company operates through three segments, Marketing and Distribution; International Farming; and Blueberries. It also provides ripening, bagging, custom packing, logistical management, and quality assurance services. In addition, the company offers merchandising and promotional support, and insights on market trends, and training services. Mission Produce, Inc. was founded in 1983 and is headquartered in Oxnard, California.

About Pinnacle Food Group

Our Mission We are committed to becoming a leader in the field of smart farming solution services, focusing on vertical and hydroponic farming. Our goal is to promote sustainable food security by developing and building customized smart farming systems based on the systematic integration of technology, hardware and software, coupled with a full range of integrated technical and supply services (Farming as a Service, or FaaS). We currently sell hydroponic growing systems and technical support services to individual households and community groups and are developing a hydroponic growing system for urban farms. Our hydroponic growing systems include various sensors, growing trays, racks for growing trays, growing baskets, light panels, water tanks and consumables such as seeds, grow sponges and nutrient solutions. We also provide advice, agricultural data intelligence, controllable data applications that assist users to manage growing conditions, environmental design consulting, equipment installation, and agricultural technical support to the users of our equipment. We intend to provide such equipment and services to urban farms (such as organic vegetable farms) in early 2025 and to smart greenhouses and large-scale farming systems later in 2025. Our core technology is based on real-time remote data monitoring, utilizing off-the-shelf sensors we have purchased from third parties. Based on the data received from the installed sensors and analyzed at a data center using big data structures and machine learning training models developed for us by third parties, we provide data intelligence to users of our hydroponic growing systems through our mobile application. The sensors installed on our hydroponic growing systems extract a large amount of data from the growth process of the vegetables. This data is transmitted to our data center, where it is processed using big data structures and machine learning models. While the data structures and machine learning models were initially developed by third parties, we continuously fine-tune them based on the environmental data obtained from our hydroponic growing systems. As the data grows over time, we periodically update and retrain the models to incorporate new patterns observed in the feedback loop. The recommendations we provide through our mobile application are both data-driven and highly customized to each user’s specific growing environment. Our customers can access real-time insights and personalized summary data through our mobile application, enabling them to make informed decisions and optimize their planting. Prior to entering the smart farming solution business in 2023, we were engaged in the sale of ginseng and provided consulting services with respect to its cultivation. We ceased to sell ginseng and provide consulting service with respect to its cultivation in 2023 to concentrate on our smart farming solution business. Our principal executive offices are located in Vancouver, Canada.