Head-To-Head Review: Sow Good (NASDAQ:SOWG) vs. Reynolds Consumer Products (NASDAQ:REYN)

Reynolds Consumer Products (NASDAQ:REYN) and Sow Good (NASDAQ:SOWG) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Reynolds Consumer Products and Sow Good, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reynolds Consumer Products	0	7	0	0	2.00
Sow Good	1	0	0	0	1.00

Reynolds Consumer Products presently has a consensus price target of $23.60, suggesting a potential downside of 7.95%. Given Reynolds Consumer Products’ stronger consensus rating and higher possible upside, research analysts clearly believe Reynolds Consumer Products is more favorable than Sow Good.

Risk & Volatility

Reynolds Consumer Products has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Reynolds Consumer Products and Sow Good’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reynolds Consumer Products	8.70%	16.05%	7.24%
Sow Good	N/A	-78.61%	-41.65%

Earnings & Valuation

This table compares Reynolds Consumer Products and Sow Good”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reynolds Consumer Products	$3.72 billion	1.45	$301.00 million	$1.57	16.33
Sow Good	$31.99 million	2.47	-$40.64 million	($24.59)	-0.16

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

Institutional & Insider Ownership

26.8% of Reynolds Consumer Products shares are owned by institutional investors. Comparatively, 10.7% of Sow Good shares are owned by institutional investors. 0.4% of Reynolds Consumer Products shares are owned by company insiders. Comparatively, 50.7% of Sow Good shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Reynolds Consumer Products beats Sow Good on 10 of the 13 factors compared between the two stocks.

About Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.

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.