Sow Good (NASDAQ:SOWG – Get Free Report) and RealReal (NASDAQ:REAL – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Analyst Ratings
This is a summary of current ratings and recommmendations for Sow Good and RealReal, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sow Good | 0 | 3 | 0 | 0 | 2.00 |
| RealReal | 0 | 1 | 4 | 1 | 3.00 |
Sow Good presently has a consensus price target of $4.25, suggesting a potential upside of 487.42%. RealReal has a consensus price target of $11.10, suggesting a potential upside of 25.00%. Given Sow Good’s higher possible upside, equities analysts plainly believe Sow Good is more favorable than RealReal.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sow Good | $31.99 million | 0.28 | -$3.70 million | ($1.32) | -0.55 |
| RealReal | $600.48 million | 1.70 | -$134.20 million | ($1.06) | -8.38 |
Sow Good has higher earnings, but lower revenue than RealReal. RealReal is trading at a lower price-to-earnings ratio than Sow Good, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sow Good and RealReal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sow Good | -154.31% | -46.08% | -26.61% |
| RealReal | -5.55% | N/A | -8.90% |
Risk & Volatility
Sow Good has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, RealReal has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500.
Institutional and Insider Ownership
10.7% of Sow Good shares are owned by institutional investors. Comparatively, 64.7% of RealReal shares are owned by institutional investors. 50.1% of Sow Good shares are owned by company insiders. Comparatively, 9.0% of RealReal shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
RealReal beats Sow Good on 11 of the 15 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 RealReal
The RealReal, Inc. operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.
Receive News & Ratings for Sow Good Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sow Good and related companies with MarketBeat.com's FREE daily email newsletter.
