Head to Head Review: Sovos Brands (NASDAQ:SOVO) and Kikkoman (OTCMKTS:KIKOY)

Sovos Brands (NASDAQ:SOVO) and Kikkoman (OTCMKTS:KIKOY) are both consumer defensive companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Valuation and Earnings

This table compares Sovos Brands and Kikkoman’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sovos Brands	$1.02 billion	2.29	$30.17 million	$0.29	79.24
Kikkoman	N/A	N/A	N/A	$198.93	0.12

Sovos Brands has higher revenue and earnings than Kikkoman. Kikkoman is trading at a lower price-to-earnings ratio than Sovos Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sovos Brands and Kikkoman, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sovos Brands	0	7	0	0	2.00
Kikkoman	0	1	0	0	2.00

Sovos Brands currently has a consensus target price of $23.06, indicating a potential upside of 0.36%. Given Sovos Brands’ higher possible upside, analysts plainly believe Sovos Brands is more favorable than Kikkoman.

Profitability

This table compares Sovos Brands and Kikkoman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sovos Brands	2.96%	16.33%	6.96%
Kikkoman	N/A	N/A	N/A

Summary

Sovos Brands beats Kikkoman on 6 of the 7 factors compared between the two stocks.

About Sovos Brands

Sovos Brands, Inc., through its subsidiaries, operates as a consumer-packaged food company that manufactures, distributes, and sells consumer food products in the United States. It operates in two segments, Dinner and Sauces, and Breakfast and Snacks. The company's principal products comprise pasta sauces, dry pasta, soups, frozen entrees, frozen pizza, yogurts, pancake and waffle mixes, other baking mixes, and frozen waffles under the Rao's, Michael Angelo's, and noosa brands. It sells its products principally to retail outlets and wholesale distributors, including traditional supermarkets, mass merchants, warehouse clubs, wholesalers, specialty food distributors, and military commissaries, as well as non-food outlets, including drug store chains, dollar stores, and e-commerce retailers. Sovos Brands, Inc. was incorporated in 2017 and is headquartered in Louisville, Colorado. As of March 12, 2024, Sovos Brands, Inc. operates as a subsidiary of Campbell Soup Company.

About Kikkoman

Kikkoman Corporation, through its subsidiaries, manufactures and sells food products in Japan and internationally. It offers soy sauces, soy sauce soup bases, dipping and marinade sauces, and Del Monte seasonings; soy milk and Del Monte beverages; sweet sake for cooking; and wines. The company also manufactures and sells canned fruits, corn products, and tomato ketchup, as well as health foods; and purchases and sells oriental food products. In addition, it produces and sells clinical diagnostic reagents, hygiene inspection agents, and processing enzymes, as well as chemical products, including hyaluronic acid; and offers real estate rental, logistics, and back-office support services. The company was formerly known as Kikkoman Shoyu Co., Ltd. and changed its name to Kikkoman Corporation in 1980. Kikkoman Corporation was founded in 1917 and is headquartered in Noda, Japan.