Lavoro (NASDAQ:LVRO) & FMC (NYSE:FMC) Head-To-Head Review

Lavoro (NASDAQ:LVRO) and FMC (NYSE:FMC) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Risk and Volatility

Lavoro has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, FMC has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Lavoro and FMC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	2	1	0	0	1.33
FMC	3	9	2	0	1.93

Lavoro presently has a consensus price target of $2.25, suggesting a potential upside of 640.13%. FMC has a consensus price target of $20.46, suggesting a potential upside of 49.03%. Given Lavoro’s higher possible upside, research analysts clearly believe Lavoro is more favorable than FMC.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lavoro	N/A	N/A	N/A
FMC	-72.93%	10.53%	2.95%

Valuation & Earnings

This table compares Lavoro and FMC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$6.52 billion	0.01	-$466.28 million	($1.57)	-0.19
FMC	$3.47 billion	0.50	-$2.24 billion	($19.98)	-0.69

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

Institutional and Insider Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 91.9% of FMC shares are held by institutional investors. 0.8% of FMC shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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.

About FMC

FMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that includes insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.