Scheid Vineyards (OTCMKTS:SVIN) versus Lavoro (NASDAQ:LVRO) Financial Review

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

Institutional and Insider Ownership

2.5% of Lavoro shares are held by institutional investors. 9.6% of Scheid Vineyards shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Scheid Vineyards has a beta of -0.33, indicating that its share price is 133% less volatile than the S&P 500. Comparatively, Lavoro has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Scheid Vineyards and Lavoro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scheid Vineyards	0	0	0	0	0.00
Lavoro	2	1	0	0	1.33

Lavoro has a consensus price target of $3.4375, indicating a potential upside of 69.75%. Given Lavoro’s stronger consensus rating and higher possible upside, analysts clearly believe Lavoro is more favorable than Scheid Vineyards.

Earnings and Valuation

This table compares Scheid Vineyards and Lavoro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scheid Vineyards	$58.41 million	0.05	-$17.80 million	($26.30)	-0.12
Lavoro	$1.89 billion	0.13	-$152.49 million	($1.63)	-1.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scheid Vineyards	-43.27%	N/A	N/A
Lavoro	N/A	N/A	N/A

Summary

Lavoro beats Scheid Vineyards on 8 of the 11 factors compared between the two stocks.

About Scheid Vineyards

Scheid Vineyards Inc. manufactures and sells wine in the United States. The company operates vineyards in Monterey and San Benito counties of California. It offers red, white, reserve, dessert wines, as well as accessories, such as wine glass. The company was incorporated in 1971 and is based in Salinas, 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.