Analyzing Sow Good (NASDAQ:SOWG) and Beyond Meat (NASDAQ:BYND)

Beyond Meat (NASDAQ:BYND) and Sow Good (NASDAQ:SOWG) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and price targets for Beyond Meat and Sow Good, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beyond Meat	6	3	0	0	1.33
Sow Good	0	0	2	0	3.00

Beyond Meat currently has a consensus target price of $5.06, suggesting a potential downside of 20.40%. Sow Good has a consensus target price of $23.00, suggesting a potential upside of 84.59%. Given Sow Good’s stronger consensus rating and higher probable upside, analysts clearly believe Sow Good is more favorable than Beyond Meat.

Earnings and Valuation

This table compares Beyond Meat and Sow Good”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beyond Meat	$317.78 million	1.30	-$338.14 million	($5.16)	-1.23
Sow Good	$41.61 million	3.04	-$3.06 million	($0.35)	-35.60

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

Institutional and Insider Ownership

52.5% of Beyond Meat shares are held by institutional investors. Comparatively, 10.7% of Sow Good shares are held by institutional investors. 8.6% of Beyond Meat shares are held by company insiders. Comparatively, 62.3% of Sow Good shares are held by company 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 Beyond Meat and Sow Good’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beyond Meat	-98.95%	N/A	-26.84%
Sow Good	13.24%	37.94%	17.90%

Volatility and Risk

Beyond Meat has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.

Summary

Sow Good beats Beyond Meat on 10 of the 14 factors compared between the two stocks.

About Beyond Meat

Beyond Meat, Inc., a plant-based meat company, develops, manufactures, markets, and sells plant-based meat products in the United States and internationally. The company sells a range of plant-based meat products across the platforms of beef, pork, and poultry. It sells its products through grocery, mass merchandiser, club stores, and natural retailer channels, as well as various food-away-from-home channels, including restaurants, foodservice outlets, and schools. The company was formerly known as Savage River, Inc. and changed its name to Beyond Meat, Inc. in September 2018. Beyond Meat, Inc. was incorporated in 2008 and is headquartered in El Segundo, California.

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.