Financial Analysis: The Hain Celestial Group (NASDAQ:HAIN) versus Sow Good (NASDAQ:SOWG)

The Hain Celestial Group (NASDAQ:HAIN) and Sow Good (NASDAQ:SOWG) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

97.0% of The Hain Celestial Group shares are held by institutional investors. Comparatively, 10.7% of Sow Good shares are held by institutional investors. 0.8% of The Hain Celestial Group shares are held by insiders. Comparatively, 62.3% of Sow Good shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares The Hain Celestial Group and Sow Good”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hain Celestial Group	$1.74 billion	0.38	-$75.04 million	($0.94)	-7.88
Sow Good	$16.07 million	6.54	-$3.06 million	$0.62	16.56

Sow Good has lower revenue, but higher earnings than The Hain Celestial Group. The Hain Celestial Group is trading at a lower price-to-earnings ratio than Sow Good, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

The Hain Celestial Group has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for The Hain Celestial Group and Sow Good, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hain Celestial Group	0	6	1	0	2.14
Sow Good	0	0	2	0	3.00

The Hain Celestial Group presently has a consensus price target of $9.57, suggesting a potential upside of 29.26%. Sow Good has a consensus price target of $23.00, suggesting a potential upside of 123.95%. Given Sow Good’s stronger consensus rating and higher probable upside, analysts plainly believe Sow Good is more favorable than The Hain Celestial Group.

Profitability

This table compares The Hain Celestial Group and Sow Good’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Hain Celestial Group	-4.32%	3.10%	1.38%
Sow Good	13.24%	37.94%	17.90%

Summary

Sow Good beats The Hain Celestial Group on 12 of the 14 factors compared between the two stocks.

About The Hain Celestial Group

The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, Europe, and internationally. It operates through two segments: North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, and spelt; and condiments. It also provides cooking and culinary oils; cereal bars; fresh and aseptic soups; yogurts; and nut butters. In addition, the company offers hot-eating desserts, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, syrups, dessert sauces, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, sunscreens, and other products under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores. The company was incorporated in 1993 and is headquartered in Hoboken, New Jersey.

About Sow Good

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.