Critical Analysis: Sow Good (OTCMKTS:ANFC) versus Riley Exploration Permian (NYSE:REPX)

Riley Exploration Permian (NYSE:REPX) and Sow Good (OTCMKTS:ANFC) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Riley Exploration Permian and Sow Good, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riley Exploration Permian	0	0	1	0	3.00
Sow Good	0	0	0	0	N/A

Riley Exploration Permian presently has a consensus price target of $38.00, suggesting a potential upside of 42.16%. Given Riley Exploration Permian’s higher possible upside, analysts clearly believe Riley Exploration Permian is more favorable than Sow Good.

Profitability

This table compares Riley Exploration Permian and Sow Good’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riley Exploration Permian	23.95%	25.74%	11.57%
Sow Good	N/A	-140.23%	-107.86%

Insider & Institutional Ownership

58.9% of Riley Exploration Permian shares are held by institutional investors. 3.9% of Riley Exploration Permian shares are held by insiders. Comparatively, 39.7% of Sow Good shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Riley Exploration Permian 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
Riley Exploration Permian	$413.27 million	1.39	$111.59 million	$4.92	5.43
Sow Good	$470,000.00	28.32	$4.13 million	N/A	N/A

Riley Exploration Permian has higher revenue and earnings than Sow Good.

Risk and Volatility

Riley Exploration Permian has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Summary

Riley Exploration Permian beats Sow Good on 8 of the 11 factors compared between the two stocks.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.

About Sow Good

Black Ridge Oil & Gas, Inc. does not have significant operations. It intends to identify and evaluate businesses or assets with a view to complete a qualifying transaction. The company was formerly known as Ante5, Inc. and changed its name to Black Ridge Oil & Gas, Inc. in April 2012. Black Ridge Oil & Gas, Inc. was founded in 2010 and is headquartered in Minneapolis, Minnesota.