Contrasting Sow Good (NASDAQ:SOWG) and Simply Good Foods (NASDAQ:SMPL)

Sow Good (NASDAQ:SOWG) and Simply Good Foods (NASDAQ:SMPL) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current recommendations for Sow Good and Simply Good Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Simply Good Foods	0	3	4	0	2.57

Sow Good presently has a consensus target price of $23.00, suggesting a potential upside of 19.42%. Simply Good Foods has a consensus target price of $39.86, suggesting a potential upside of 10.22%. Given Sow Good’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sow Good is more favorable than Simply Good Foods.

Profitability

This table compares Sow Good and Simply Good Foods’ 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%
Simply Good Foods	11.12%	10.12%	7.62%

Insider & Institutional Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 88.4% of Simply Good Foods shares are held by institutional investors. 62.3% of Sow Good shares are held by company insiders. Comparatively, 11.0% of Simply Good Foods shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sow Good and Simply Good Foods’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$16.07 million	12.15	-$3.06 million	($0.35)	-55.03
Simply Good Foods	$1.27 billion	2.86	$133.57 million	$1.39	26.01

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

Volatility & Risk

Sow Good has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, Simply Good Foods has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Summary

Simply Good Foods beats Sow Good on 9 of the 14 factors compared between the two stocks.

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.

About Simply Good Foods

The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names. The company also provides confectionery products, such as full-size and mini peanut butter cups, and fudgey brownie and gooey caramel candy bites, chocolatey coated peanut candies, and coconutty caramel candy bars under Atkins Endulge brand name.It distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. The company also sells its products through e-commerce channels, including questnutrition.com, atkins.com, amazon.com and others. The Simply Good Foods Company was founded in 2017 and is headquartered in Denver, Colorado.