Reviewing PureBase (OTCMKTS:PUBC) and Lavoro (NASDAQ:LVRO)

PureBase (OTCMKTS:PUBC) and Lavoro (NASDAQ:LVRO) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PureBase and Lavoro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PureBase	0	0	0	0	N/A
Lavoro	0	1	2	0	2.67

Lavoro has a consensus target price of $10.00, indicating a potential upside of 72.41%. Given Lavoro’s higher possible upside, analysts plainly believe Lavoro is more favorable than PureBase.

Earnings & Valuation

This table compares PureBase and Lavoro’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PureBase	N/A	N/A	N/A	$0.00	-46.04
Lavoro	$1.79 billion	0.38	-$50.50 million	($0.98)	-5.92

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

Profitability

This table compares PureBase and Lavoro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PureBase	N/A	N/A	N/A
Lavoro	-5.99%	-6.44%	-1.45%

Insider & Institutional Ownership

2.5% of Lavoro shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Lavoro beats PureBase on 5 of the 9 factors compared between the two stocks.

About PureBase

PureBase Corporation, an industrial mineral and natural resource company, engages in the provision of solutions to the agriculture and construction materials markets in the United States. The company offers PureBase Shade Advantage WP, a natural mineral plant protectant that reduces sunburn damage to plant tissue exposed to UV and infrared radiation; humic acid product derived from leonardite, which can be an important medium for soil health, water retention, and positive interactions with the soil microbiome; and other specialized fertilizers, sun protectants, soil amendments, and bio-stimulants for organic and non-organic sustainable agriculture. It is also involved in the development and testing of a kaolin-based product, that can help in creating lower CO2-emitting concrete using supplementary cementitious materials primarily for cement markets. The company was formerly known as Port of Call Online, Inc. and changed its name to Purebase Corporation in January 2015. Purebase Corporation was incorporated in 2010 is headquartered in Ione, California.

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 São Paulo, Brazil.