Cadiz (NASDAQ:CDZI – Get Free Report) and Edible Garden (NASDAQ:EDBL – Get Free Report) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for Cadiz and Edible Garden, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cadiz | 1 | 1 | 1 | 0 | 2.00 |
| Edible Garden | 1 | 0 | 1 | 0 | 2.00 |
Cadiz presently has a consensus price target of $10.00, suggesting a potential upside of 216.46%. Edible Garden has a consensus price target of $45.00, suggesting a potential upside of 1,333.12%. Given Edible Garden’s higher possible upside, analysts clearly believe Edible Garden is more favorable than Cadiz.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadiz | $16.31 million | 16.29 | -$34.15 million | ($0.46) | -6.87 |
| Edible Garden | $12.81 million | 0.03 | -$17.33 million | ($4,939.64) | -0.00 |
Edible Garden has lower revenue, but higher earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than Edible Garden, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
79.7% of Cadiz shares are owned by institutional investors. Comparatively, 13.0% of Edible Garden shares are owned by institutional investors. 2.3% of Cadiz shares are owned by insiders. Comparatively, 0.8% of Edible Garden shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Cadiz has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Edible Garden has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.
Profitability
This table compares Cadiz and Edible Garden’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cadiz | -221.43% | -129.97% | -24.08% |
| Edible Garden | -131.59% | N/A | -88.36% |
Summary
Cadiz beats Edible Garden on 7 of the 12 factors compared between the two stocks.
About Cadiz
Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The company operates through Land and Water Resources; and Water Filtration Technology segments. It offers water supply, water storage, water conveyance, and water filtration services. In addition, the company is involved in the cultivation of grain crops and alfalfa, as well as provides water filtration solutions for impaired or contaminated groundwater sources. It serves public water systems, government agencies, and other clients. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.
About Edible Garden
Edible Garden AG Incorporated, together with its subsidiaries, operate as a controlled environment agriculture farming company. It offers various packaged products, including cilantro, rosemary, mint, thyme, oregano, bay leaves, chives, poultry mix, sage, dill, buttercrunch living lettuce, basil, living butterhead lettuce, basil, parsley, arugula spring mix, baby arugula blend, baby romaine, and crisp ranch and Caesar salad kits. The company sells its products to various regional and national supermarkets. Edible Garden AG Incorporated was founded in 2020 and is based in Belvidere, New Jersey.
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