Hempacco (NASDAQ:HPCO) & Universal (NYSE:UVV) Critical Analysis

Universal (NYSE:UVV) and Hempacco (NASDAQ:HPCO) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Valuation & Earnings

This table compares Universal and Hempacco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal	$2.85 billion	0.40	$32.64 million	$0.77	59.51
Hempacco	$4.05 million	0.00	-$13.13 million	($2.30)	N/A

Universal has higher revenue and earnings than Hempacco. Hempacco is trading at a lower price-to-earnings ratio than Universal, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

81.0% of Universal shares are held by institutional investors. Comparatively, 7.6% of Hempacco shares are held by institutional investors. 2.2% of Universal shares are held by insiders. Comparatively, 44.8% of Hempacco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Universal and Hempacco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal	0.67%	3.50%	1.74%
Hempacco	N/A	N/A	N/A

Volatility and Risk

Universal has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Hempacco has a beta of 2.77, suggesting that its stock price is 177% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Universal and Hempacco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal	0	2	0	0	2.00
Hempacco	0	0	0	0	0.00

Given Hempacco’s higher probable upside, analysts plainly believe Hempacco is more favorable than Universal.

Summary

Universal beats Hempacco on 9 of the 12 factors compared between the two stocks.

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.

About Hempacco

Hempacco Co., Inc. engages in the manufacture and sale of smokable hemp and herb products in California. It offers The Real Stuff hemp smokables and flavored hemp rolling papers. The company was incorporated in 2019 and is headquartered in San Diego, California. Hempacco Co., Inc. is a subsidiary of Green Globe International, Inc.