Critical Analysis: Sow Good (SOWG) and The Competition

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

Institutional & Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Food & kindred products” companies are owned by institutional investors. 62.3% of Sow Good shares are owned by insiders. Comparatively, 21.0% of shares of all “Food & kindred products” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sow Good and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Sow Good Competitors	323	1315	1520	31	2.39

Sow Good currently has a consensus target price of $23.00, indicating a potential upside of 21.95%. As a group, “Food & kindred products” companies have a potential upside of 13.73%. Given Sow Good’s stronger consensus rating and higher possible upside, research analysts plainly believe Sow Good is more favorable than its competitors.

Earnings & Valuation

This table compares Sow Good and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sow Good	$16.07 million	-$3.06 million	-53.88
Sow Good Competitors	$7.29 billion	$662.56 million	2.42

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

Profitability

This table compares Sow Good and its competitors’ 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	-30.56%	-48.84%	-12.26%

Risk and Volatility

Sow Good has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, Sow Good’s competitors have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Summary

Sow Good beats its competitors on 8 of the 13 factors compared.

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.