Alico (ALCO) and Its Competitors Financial Contrast

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

Earnings & Valuation

This table compares Alico and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Alico	$44.07 million	-$147.33 million	168.59
Alico Competitors	$6.93 billion	$707.94 million	-2,425.83

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

Profitability

This table compares Alico and its competitors’ 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	-12.78%	-127.73%	-2.01%

Volatility & Risk

Alico has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Alico’s competitors have a beta of -3.81, indicating that their average share price is 481% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Alico and its competitors, 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	2449	8300	8375	404	2.34

Alico presently has a consensus target price of $45.00, suggesting a potential upside of 21.33%. As a group, “Food Products” companies have a potential upside of 17.40%. Given Alico’s stronger consensus rating and higher possible upside, equities analysts clearly believe Alico is more favorable than its competitors.

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 competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

62.3% of Alico shares are held by institutional investors. Comparatively, 39.0% of shares of all “Food Products” companies are held by institutional investors. 6.7% of Alico shares are held by company insiders. Comparatively, 19.0% of shares of all “Food Products” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Alico beats its competitors 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.