Reviewing Alico (ALCO) and Its Competitors

Alico (NASDAQ:ALCOGet Rating) is one of 32 publicly-traded companies in the “Agricultural production – crops” industry, but how does it weigh in compared to its peers? We will compare Alico to related companies based on the strength of its profitability, analyst recommendations, dividends, risk, earnings, institutional ownership and valuation.

Institutional & Insider Ownership

44.8% of Alico shares are owned by institutional investors. Comparatively, 26.9% of shares of all “Agricultural production – crops” companies are owned by institutional investors. 7.9% of Alico shares are owned by insiders. Comparatively, 20.6% of shares of all “Agricultural production – crops” companies are owned by 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 34.31% -2.06% -1.23%
Alico Competitors -180.98% -13.81% -9.50%

Dividends

Alico pays an annual dividend of $2.00 per share and has a dividend yield of 6.2%. Alico pays out 46.4% of its earnings in the form of a dividend. As a group, “Agricultural production – crops” companies pay a dividend yield of 3.1% and pay out 45.4% of their earnings in the form of a dividend. Alico has raised its dividend for 3 consecutive years.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Alico $108.56 million $34.86 million 7.49
Alico Competitors $1.63 billion $92.76 million 1.29

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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alico 0 0 0 0 N/A
Alico Competitors 38 127 423 23 2.71

As a group, “Agricultural production – crops” companies have a potential upside of 95.96%. Given Alico’s peers higher probable upside, analysts clearly believe Alico has less favorable growth aspects than its peers.

Volatility & Risk

Alico has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Alico’s peers have a beta of -28.78, meaning that their average share price is 2,978% less volatile than the S&P 500.

Summary

Alico beats its peers on 7 of the 12 factors compared.

About Alico

(Get Rating)

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 cultivates citrus trees to produce citrus for delivery to the processed and fresh citrus markets. The Land Management and Other Operations segment owns and manages land in Collier, Glades, and Hendry Counties; and leasing of land for recreational and grazing purposes, conservation, and mining activities. As of September 30, 2021, it had 83,000 acres of land situated in eight counties in Florida, which include the Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, and Polk. The company was founded in 1960 and is headquartered in Fort Myers, Florida.

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