Head-To-Head Contrast: Cadiz (NASDAQ:CDZI) & Local Bounti (NYSE:LOCL)

Local Bounti (NYSE:LOCL) and Cadiz (NASDAQ:CDZI) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Volatility & Risk

Local Bounti has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, Cadiz has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Insider & Institutional Ownership

28.0% of Local Bounti shares are held by institutional investors. Comparatively, 79.8% of Cadiz shares are held by institutional investors. 19.8% of Local Bounti shares are held by insiders. Comparatively, 1.7% of Cadiz shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Local Bounti and Cadiz”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Local Bounti	$38.14 million	1.31	-$119.90 million	($11.34)	-0.20
Cadiz	$9.61 million	51.89	-$31.14 million	($0.49)	-12.24

Cadiz has lower revenue, but higher earnings than Local Bounti. Cadiz is trading at a lower price-to-earnings ratio than Local Bounti, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Local Bounti and Cadiz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Local Bounti	1	0	0	0	1.00
Cadiz	1	1	1	0	2.00

Cadiz has a consensus price target of $10.00, suggesting a potential upside of 66.67%. Given Cadiz’s stronger consensus rating and higher probable upside, analysts plainly believe Cadiz is more favorable than Local Bounti.

Profitability

This table compares Local Bounti and Cadiz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Local Bounti	-265.21%	N/A	-28.36%
Cadiz	-206.65%	-93.48%	-24.26%

Summary

Cadiz beats Local Bounti on 9 of the 14 factors compared between the two stocks.

About Local Bounti

Local Bounti Corporation grows and packs fresh greens in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.

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.