Alico (ALCO) versus The Competition Financial Review

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

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

Volatility & Risk

Alico has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Alico’s peers have a beta of -3.84, suggesting that their average stock price is 484% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Alico	$44.07 million	-$147.33 million	169.85
Alico Competitors	$15.47 billion	$703.44 million	-2,412.59

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

Institutional and 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Alico and its peers’ 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	-12.87%	-127.95%	-2.08%

Analyst Ratings

This is a breakdown of current ratings for Alico and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alico	0	1	1	1	3.00
Alico Competitors	2454	8305	8384	405	2.34

Alico presently has a consensus price target of $45.00, indicating a potential upside of 20.42%. As a group, “Food Products” companies have a potential upside of 16.53%. Given Alico’s stronger consensus rating and higher probable upside, analysts clearly believe Alico is more favorable than its peers.

Summary

Alico beats its peers on 8 of the 15 factors compared.

Alico Company Profile

Alico, Inc. (NASDAQ: ALCO) is an agribusiness and land management company headquartered in Fort Myers, Florida. The company owns and manages agricultural land primarily in Florida, where it focuses on citrus production and other land-based activities. Alico’s principal agricultural operations include growing oranges, grapefruit and specialty citrus varieties. The company also manages sugarcane and cattle-grazing activities, while using portions of its land for conservation, environmental mitigation, hunting leases and other land-related purposes.