Analyzing Lavoro (NASDAQ:LVRO) and Jeffs’ Brands (NASDAQ:JFBR)

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

Institutional & Insider Ownership

2.5% of Lavoro shares are held by institutional investors. Comparatively, 38.9% of Jeffs’ Brands shares are held by institutional investors. 51.3% of Jeffs’ Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Lavoro and Jeffs’ Brands’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lavoro	$1.79 billion	0.37	-$50.50 million	($0.98)	-5.87
Jeffs’ Brands	$10.01 million	0.03	-$4.60 million	N/A	N/A

Jeffs’ Brands has lower revenue, but higher earnings than Lavoro.

Risk and Volatility

Lavoro has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Jeffs’ Brands has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.

Profitability

This table compares Lavoro and Jeffs’ Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lavoro	-5.99%	-6.44%	-1.45%
Jeffs’ Brands	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Lavoro and Jeffs’ Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lavoro	0	1	2	0	2.67
Jeffs’ Brands	0	0	0	0	N/A

Lavoro currently has a consensus target price of $10.00, suggesting a potential upside of 73.91%. Given Lavoro’s higher probable upside, equities analysts clearly believe Lavoro is more favorable than Jeffs’ Brands.

Summary

Jeffs’ Brands beats Lavoro on 7 of the 11 factors compared between the two stocks.

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 Sao Paulo, Brazil.

About Jeffs’ Brands

Jeffs' Brands Ltd, together with its subsidiaries, operates as an e-commerce company. It engages in the sale of various consumer products on Amazon online marketplace. The company offers knife-sharpening sets, sharpeners, and nonslip rubber bases under the KnifePlanet brand; steel-tip dart sets under the CC-Exquisite brand; car door pet scratches protectors under the PetEvo brand; bag sets, including adjustable stands and boxing gloves, and party supply kits for children under the Whoobli brand; and products for filtering and purifying air in vehicles under the Zendora brand. It also provides pet hair removers for cats and dogs under the Wellted brand; and pest control products. In addition, the company owns and operates Wellution, an Amazon food supplements and cosmetics brand. It offers its products primarily to individual online consumers. The company was incorporated in 2021 and is based in Bnei Brak, Israel.