Reviewing Lavoro (LVRO) & Its Competitors

Lavoro (NASDAQ:LVRO) is one of 28 publicly-traded companies in the “Miscellaneous retail” industry, but how does it contrast to its rivals? We will compare Lavoro to related companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Lavoro and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	-5.99%	-6.44%	-1.45%
Lavoro Competitors	-22.15%	-42.09%	-4.34%

Insider & Institutional Ownership

2.5% of Lavoro shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Miscellaneous retail” companies are owned by institutional investors. 20.2% of shares of all “Miscellaneous retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Lavoro has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Lavoro’s rivals have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Lavoro and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	0	1	2	0	2.67
Lavoro Competitors	120	539	459	6	2.31

Lavoro currently has a consensus target price of $10.83, suggesting a potential upside of 62.91%. As a group, “Miscellaneous retail” companies have a potential downside of 1.43%. Given Lavoro’s stronger consensus rating and higher possible upside, research analysts clearly believe Lavoro is more favorable than its rivals.

Valuation and Earnings

This table compares Lavoro and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lavoro	$1.79 billion	-$50.50 million	-6.79
Lavoro Competitors	$1.94 billion	$32.37 million	9.69

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

Summary

Lavoro rivals beat Lavoro on 7 of the 13 factors compared.

About Lavoro

Lavoro Limited operates as an agricultural inputs retailer. The company operates through three segments: Brazil Cluster, LATAM Cluster, and Crop Care Cluster. It distributes agricultural inputs, such as crop protection, seeds, fertilizers, foliar fertilizers, biologicals, adjuvants, organominerals, and others for the agricultural industry. The company also produces specialty fertilizers, crop protection products, and biological crop inputs. It operates in Brazil, Colombia, and Uruguay. The company sells its products through its physical stores and digital channel. Lavoro Limited was founded in 2017 and is headquartered in Sao Paulo, Brazil.