Financial Survey: Scheid Vineyards (OTCMKTS:SVIN) versus Calavo Growers (NASDAQ:CVGW)

Calavo Growers (NASDAQ:CVGW) and Scheid Vineyards (OTCMKTS:SVIN) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

81.3% of Calavo Growers shares are held by institutional investors. 7.2% of Calavo Growers shares are held by insiders. Comparatively, 9.6% of Scheid Vineyards shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Calavo Growers and Scheid Vineyards”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calavo Growers	$661.54 million	0.60	-$1.08 million	$0.88	25.23
Scheid Vineyards	$58.41 million	N/A	-$17.80 million	($27.83)	-0.06

Calavo Growers has higher revenue and earnings than Scheid Vineyards. Scheid Vineyards is trading at a lower price-to-earnings ratio than Calavo Growers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Calavo Growers and Scheid Vineyards, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calavo Growers	0	2	1	0	2.33
Scheid Vineyards	0	0	0	0	0.00

Calavo Growers currently has a consensus target price of $40.00, indicating a potential upside of 80.18%. Given Calavo Growers’ stronger consensus rating and higher probable upside, analysts plainly believe Calavo Growers is more favorable than Scheid Vineyards.

Profitability

This table compares Calavo Growers and Scheid Vineyards’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calavo Growers	2.28%	11.73%	7.86%
Scheid Vineyards	-45.56%	N/A	N/A

Risk and Volatility

Calavo Growers has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Scheid Vineyards has a beta of -0.36, meaning that its stock price is 136% less volatile than the S&P 500.

Summary

Calavo Growers beats Scheid Vineyards on 12 of the 13 factors compared between the two stocks.

About Calavo Growers

Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to retail grocery and foodservice customers, club stores, mass merchandisers, food distributors, and wholesale customers worldwide. It operates through Grown and Prepared segments. The Grown segment distributes tomatoes and papayas; and procures avocados grown in California, Mexico, Peru, and Colombia. The Prepared segment is involved in the distribution of prepared avocado products, salsa, fresh-cut fruit and vegetables, fresh prepared entrees salads, wraps, sandwiches, parfaits, and fresh snacking products, as well as ready-to-heat entrees, other hot bars and various deli items, meals kit components, and salad kits. It offers its products under the Calavo brands and related logos; and Avo Fresco, Bueno, Avo Fresco, Bueno, Calavo Gold, Celebrate the Taste, El Dorado, Taste of Paradise, The First Name in Avocados, The Family of Fresh, ProRipeVIP, RIPE NOW!, Renaissance Food Group, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California.

About Scheid Vineyards

Scheid Vineyards Inc. manufactures and sells wine in the United States. The company operates vineyards in Monterey and San Benito counties of California. It offers red, white, reserve, dessert wines, as well as accessories, such as wine glass. The company was incorporated in 1971 and is based in Salinas, California.