Investors are evaluating two small-cap consumer staples companies, Australian Oilseeds (NASDAQ:COOT) and Above Food Ingredients (NASDAQ:ABVE), to determine which represents a better investment opportunity. The assessment focuses on several factors, including risk, earnings, institutional ownership, dividends, analyst recommendations, valuation, and profitability.
Valuation and Financial Performance
Analyzing the financial performance reveals significant differences between the two companies. As reported, Australian Oilseeds generated a gross revenue of $27.01 million with a price-to-sales ratio of 0.72. In contrast, Above Food Ingredients reported a much higher gross revenue of $273.06 million, but with a lower price-to-sales ratio of 0.23.
Despite its smaller revenue, Australian Oilseeds reported a net income loss of $840,000, resulting in earnings per share (EPS) of ($0.04). Above Food Ingredients, on the other hand, did not provide EPS figures in the available data, but recorded a net income loss of $39.49 million.
Analyst Ratings and Investment Sentiment
Recent ratings from MarketBeat provide insight into investor sentiment towards these companies. Australian Oilseeds garnered a perfect score of 1.00 based on its sell ratings, hold ratings, and buy ratings, indicating a clear recommendation against investment. In contrast, Above Food Ingredients received no ratings from analysts, suggesting a lack of consensus regarding its investment potential.
Risk assessment shows that Australian Oilseeds has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Above Food Ingredients has a beta of -0.07, marking it as 107% less volatile than the index. This information suggests that both companies exhibit significantly lower price volatility than the broader market.
Profitability and Ownership Structure
When evaluating profitability, Australian Oilseeds presents a net margin of -2.98%, with return on equity at -104.19% and return on assets at -4.15%. In contrast, Above Food Ingredients did not report any available profitability metrics in the provided data.
Regarding ownership, Australian Oilseeds has 13.0% of its shares held by institutional investors, while Above Food Ingredients has a higher institutional ownership at 28.8%. Insider ownership also differs, with 69.1% of Australian Oilseeds shares held by insiders compared to 64.5% for Above Food Ingredients. High institutional ownership can indicate confidence from large investors in a company’s potential to outperform the market over time.
Company Profiles
Australian Oilseeds Holdings Ltd., founded on December 29, 2022, operates from Cootamundra, Australia. The company is involved in the manufacturing and sale of oilseeds, focusing on various business combinations, including acquisitions and partnerships.
In contrast, Above Food Ingredients Inc., based in Regina, Canada, operates as a regenerative ingredient company with a vertically integrated supply chain. Its operations span several countries, including the United States, Mexico, China, France, and Turkey. The company functions through two primary segments: Disruptive Agriculture and Rudimentary Ingredients, and Consumer Packaged Goods.
As investors weigh their options, both Australian Oilseeds and Above Food Ingredients present unique opportunities and challenges. The decision on where to invest will depend on individual risk tolerance and investment strategy.
