SW Seed Story

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SANW -- USA Stock  

USD 2.48  0.16  6.06%

It looks like Archer Daniels will be up for a correction faster as its share price went up 1.55% today to SW Seed's 2.56%As many rational traders are trying to avoid consumer defensive space, it makes sense to focus on SW Seed Company a little further and understand how it stands against Archer Daniels and other similar entities. We are going to recap some of the competitive aspects of both SW Seed and Archer.
Published over a month ago
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Archer Daniels Midland vs SW Seed Company
By analyzing existing technical and fundamental indicators between SW Seed and Archer, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Archer with a short position in SW Seed. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. SW Seed has an asset utilization ratio of 79.18 percent. This indicates that the company is making $0.79 for each dollar of assets. An increasing asset utilization means that SW Seed Company is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as SW Seed or Archer is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is SW Seed's Liquidity

SW Seed financial leverage refers to using borrowed capital as a funding source to finance SW Seed Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SW Seed financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between SW Seed's total debt and its cash.

Correlation Between SW Seed and Archer Daniels Midland

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding SW Seed together with similar or unrelated positions with a negative correlation. For example, you can also add Archer Daniels to your portfolio. If Archer Daniels is not perfectly correlated to SW Seed it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When SW Seed for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between SANW and ADM for more information.

Note

Are you currently holding both SW Seed and Archer Daniels in your portfolio? Please note if you are using this as a pair-trade strategy between SW Seed and Archer Daniels, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is driving SW Seed Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check SW Seed revenue. Based on the latest financial disclosure, SW Seed Company reported 100.56 M of revenue. This is 99.32% lower than that of the Consumer Defensive sector and 99.02% lower than that of the Farm Products industry. The revenue for all United States stocks is 98.93% higher than that of SW Seed. As for Archer Daniels we see revenue of 64.31 B, which is much higher than that of the Farm Products

ADM
64.3 B
SANW100.56 Million0.14
Sector9.43 Billion12.78
ADM64.31 Billion87.09

Another setback for SW Seed sophisticated investors

SW Seed latest risk adjusted performance rises over 0.11. SW Seed Company is displaying above-average volatility over the selected time horizon. Investors should scrutinize SW Seed Company independently to ensure intended market timing strategies are aligned with expectations about SW Seed volatility.

The Bottom Line

While many other companies within the farm products industry are still a little expensive, even after the recent corrections, SW Seed may offer a potential longer-term growth to sophisticated investors. The inconsistency in the assessment between current SW Seed valuation and our trade advice on SW Seed is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to SW Seed.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of SW Seed Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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