Sow Good (SOWG) & Its Peers Critical Analysis

Sow Good (OTCMKTS:SOWG) is one of 39 public companies in the “Food & kindred products” industry, but how does it contrast to its peers? We will compare Sow Good to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.

Profitability

This table compares Sow Good and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sow Good	-19.05%	-91.69%	-23.25%
Sow Good Competitors	-27.45%	-26.45%	-6.91%

Analyst Recommendations

This is a summary of current recommendations and price targets for Sow Good and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	0	0	N/A
Sow Good Competitors	318	1286	1480	30	2.39

As a group, “Food & kindred products” companies have a potential upside of 19.74%. Given Sow Good’s peers higher probable upside, analysts plainly believe Sow Good has less favorable growth aspects than its peers.

Institutional & Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Food & kindred products” companies are owned by institutional investors. 84.7% of Sow Good shares are owned by insiders. Comparatively, 18.0% of shares of all “Food & kindred products” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Sow Good has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Sow Good’s peers have a beta of 1.04, suggesting that their average stock price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sow Good and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sow Good	$16.07 million	-$3.06 million	-15.00
Sow Good Competitors	$7.55 billion	$686.53 million	5.92

Sow Good’s peers have higher revenue and earnings than Sow Good. Sow Good is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Sow Good peers beat Sow Good on 7 of the 10 factors compared.

Sow Good Company Profile

Sow Good Inc. produces and sells freeze-dried snacks, smoothies, soups, and granola in the United States. It provides freeze-dried candy products. The company markets its products through direct-to-consumer focused websites, as well as through the business-to-business sales channels. It offers its products under the Sow Good and Sustain Us brands. The company was formerly known as Black Ridge Oil & Gas, Inc. and changed its name to Sow Good Inc. in January 2021. Sow Good Inc. was founded in 2010 and is based in Irving, Texas.