Critical Analysis: Sow Good (NASDAQ:SOWG) versus BellRing Brands (NYSE:BRBR)

BellRing Brands (NYSE:BRBR) and Sow Good (NASDAQ:SOWG) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BellRing Brands and Sow Good, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BellRing Brands	0	3	11	0	2.79
Sow Good	0	0	2	0	3.00

BellRing Brands currently has a consensus target price of $62.64, indicating a potential upside of 0.84%. Sow Good has a consensus target price of $23.00, indicating a potential upside of 116.17%. Given Sow Good’s stronger consensus rating and higher possible upside, analysts clearly believe Sow Good is more favorable than BellRing Brands.

Valuation and Earnings

This table compares BellRing Brands 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
BellRing Brands	$1.91 billion	4.24	$165.50 million	$1.44	43.14
Sow Good	$41.61 million	2.59	-$3.06 million	($0.35)	-30.40

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

Volatility & Risk

BellRing Brands has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.

Insider & Institutional Ownership

95.0% of BellRing Brands shares are owned by institutional investors. Comparatively, 10.7% of Sow Good shares are owned by institutional investors. 0.8% of BellRing Brands shares are owned by insiders. Comparatively, 62.3% of Sow Good shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares BellRing Brands and Sow Good’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BellRing Brands	11.55%	-88.30%	32.67%
Sow Good	13.24%	37.94%	17.90%

Summary

BellRing Brands beats Sow Good on 8 of the 14 factors compared between the two stocks.

About BellRing Brands

BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.

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.