Financial Analysis: Sow Good (SOWG) versus The Competition

Sow Good (NASDAQ:SOWG) is one of 39 publicly-traded companies in the “Food & kindred products” industry, but how does it weigh in compared to its peers? We will compare Sow Good to similar businesses based on the strength of its risk, dividends, profitability, valuation, earnings, institutional ownership and analyst recommendations.

Volatility & Risk

Sow Good has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Sow Good’s peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Sow Good and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sow Good	-4.21%	-19.26%	-6.42%
Sow Good Competitors	-30.58%	-48.85%	-12.27%

Insider & Institutional Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 49.0% of shares of all “Food & kindred products” companies are held by institutional investors. 62.3% of Sow Good shares are held by insiders. Comparatively, 21.0% of shares of all “Food & kindred products” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Sow Good and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sow Good	$16.07 million	-$3.06 million	-58.37
Sow Good Competitors	$7.29 billion	$662.56 million	1.83

Sow Good’s peers have higher revenue and earnings than Sow Good. Sow Good is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for Sow Good and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Sow Good Competitors	323	1313	1518	31	2.39

Sow Good currently has a consensus price target of $23.00, suggesting a potential upside of 12.58%. As a group, “Food & kindred products” companies have a potential upside of 21.50%. Given Sow Good’s peers higher probable upside, analysts clearly believe Sow Good has less favorable growth aspects than its peers.

Summary

Sow Good beats its peers on 7 of the 13 factors compared.

Sow Good Company Profile

Sow Good Inc. is engaged in producing nutritious products in the freeze-dried food industry. Sow Good Inc., formerly known as Black Ridge Oil and Gas Inc., is based in IRVING, Texas.