Alico (NASDAQ:ALCO) and Lifeway Foods (NASDAQ:LWAY) Head-To-Head Review
by Amy Steele · The Cerbat GemAlico (NASDAQ:ALCO – Get Free Report) and Lifeway Foods (NASDAQ:LWAY – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Dividends
Alico pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Lifeway Foods pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. 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. Lifeway Foods pays out 11.4% of its earnings in the form of a dividend.
Profitability
This table compares Alico and Lifeway Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alico | 8.98% | -20.77% | -11.09% |
| Lifeway Foods | 4.48% | 12.66% | 9.29% |
Valuation & Earnings
This table compares Alico and Lifeway Foods”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alico | $17.07 million | 16.34 | -$147.33 million | $0.22 | 170.84 |
| Lifeway Foods | $242.41 million | 1.41 | $13.86 million | $0.70 | 32.31 |
Lifeway Foods has higher revenue and earnings than Alico. Lifeway Foods is trading at a lower price-to-earnings ratio than Alico, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
62.3% of Alico shares are held by institutional investors. Comparatively, 36.4% of Lifeway Foods shares are held by institutional investors. 6.7% of Alico shares are held by insiders. Comparatively, 18.6% of Lifeway Foods shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Alico has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Lifeway Foods has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Alico and Lifeway Foods, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alico | 0 | 1 | 1 | 1 | 3.00 |
| Lifeway Foods | 0 | 1 | 2 | 1 | 3.00 |
Alico presently has a consensus target price of $45.00, indicating a potential upside of 19.73%. Lifeway Foods has a consensus target price of $34.00, indicating a potential upside of 50.34%. Given Lifeway Foods’ higher possible upside, analysts clearly believe Lifeway Foods is more favorable than Alico.
Summary
Lifeway Foods beats Alico on 9 of the 15 factors compared between the two stocks.
About Alico
Alico, Inc., together with its subsidiaries, operates as an agribusiness and land management company in the United States. The company operates in two segments, Alico Citrus, and Land Management and Other Operations. The Alico Citrus segment engages in planting, owning, cultivating, and/or managing citrus groves to produce fruit for sale to fresh and processed citrus markets, including activities related to the purchase and resale of fruit and value-added services, which include contracting for the harvesting, marketing, and hauling of citrus. The Land Management and Other Operations segment is involved in the activities related to native plant sales, grazing and hunting leasing, management, and/or conservation of unimproved native pastureland; and activities related to rock mining royalties and other insignificant lines of business, as well as in the activities related to owning and/or leasing improved farmland. The company was incorporated in 1960 and is based in Fort Myers, Florida.
About Lifeway Foods
Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types. The company offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; drinkable yogurt; and fresh made butter and sour cream. It sells its products under the Lifeway, GlenOaks Farms, and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors. Lifeway Foods, Inc. was incorporated in 1986 and is based in Morton Grove, Illinois.