Landec (LNDC) and Farmmi (FAMI) Critical Analysis

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

Insider and Institutional Ownership

89.0% of Landec shares are held by institutional investors. Comparatively, 6.7% of Farmmi shares are held by institutional investors. 15.0% of Landec shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Landec and Farmmi’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Landec $524.23 million 0.70 $24.82 million $0.41 30.76
Farmmi N/A N/A N/A N/A N/A

Landec has higher revenue and earnings than Farmmi.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Landec and Farmmi, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Landec 0 0 2 0 3.00
Farmmi 0 0 0 0 N/A

Landec currently has a consensus target price of $17.50, indicating a potential upside of 38.78%. Given Landec’s higher possible upside, research analysts clearly believe Landec is more favorable than Farmmi.

Profitability

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

Net Margins Return on Equity Return on Assets
Landec 4.04% 3.70% 2.33%
Farmmi N/A N/A N/A

Summary

Landec beats Farmmi on 8 of the 8 factors compared between the two stocks.

Landec Company Profile

Landec Corporation, together with its subsidiaries, designs, develops, manufactures, and sells differentiated health and wellness products for food and biomaterials markets. It operates through two segments, Packaged Fresh Vegetables and Biomaterials. The Packaged Fresh Vegetables segment markets and packs specialty packaged whole and fresh-cut fruits and vegetables utilizing the BreatheWay specialty packaging technology for the retail grocery, club store, and food service industries under the Eat Smart and GreenLine brands, as well as private label brands; and sells BreatheWay packaging technology to partners for fruit and vegetable products. The Biomaterials segment develops, manufactures, and sells pharmaceutical-grade sodium hyaluronate (HA), a naturally occurring polysaccharide that is distributed in the extracellular matrix in animals and humans; and provides contract development, fermentation and aseptic formulation, filling, and packaging services. This segment sells its HA products to the ophthalmic, orthopedic, and oncology markets, as well as supplies HA products to customers pursuing other medical applications, such as aesthetic surgery, medical device coatings, tissue engineering, and pharmaceuticals. The company also produces special olive oils and wine vinegars to natural food, conventional grocery, and mass retail stores. Landec Corporation sells its products in the United States, Canada, Belgium, Ireland, the United Kingdom, Switzerland, Mexico, and other countries. The company was founded in 1986 and is headquartered in Santa Clara, California.

Farmmi Company Profile

Farmmi, Inc. processes and sells agricultural products in China, the United States, Japan, Canada, Europe, and the Middle East. The company offers shiitake and Mu Er mushrooms; and other edible fungi products, including bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondosa, coprinus comatus, and hericium erinaceus. It also operates Farmmi Jicai, an online store that sells edible fungi products under Forasen and Farmmi Liangpin brands; Farmmi Liangpin Market, an online store that sells edible fungi products under Farmmi Liangpin and Puyangtang brands, as well as other agricultural products purchased from third party manufacturers. The company offers its products through distributors. Farmmi, Inc. was founded in 2015 and is headquartered in Lishui, China.

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