Comparing Sow Good (NASDAQ:SOWG) & Simply Good Foods (NASDAQ:SMPL)

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

Volatility & Risk

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

Valuation & Earnings

This table compares Simply Good Foods and Sow Good’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simply Good Foods	$1.24 billion	2.91	$133.57 million	$1.39	25.99
Sow Good	$16.07 million	12.63	-$3.06 million	($0.35)	-57.20

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.

Insider and Institutional Ownership

88.5% of Simply Good Foods shares are held by institutional investors. Comparatively, 10.7% of Sow Good shares are held by institutional investors. 11.0% of Simply Good Foods shares are held by company insiders. Comparatively, 62.3% of Sow Good shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Simply Good Foods and Sow Good’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simply Good Foods	11.12%	10.12%	7.62%
Sow Good	-4.21%	-19.26%	-6.42%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Simply Good Foods and Sow Good, as reported by MarketBeat.

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

Simply Good Foods currently has a consensus price target of $39.86, indicating a potential upside of 10.32%. Sow Good has a consensus price target of $23.00, indicating a potential upside of 14.89%. Given Sow Good’s stronger consensus rating and higher possible upside, analysts clearly believe Sow Good is more favorable than Simply Good Foods.

Summary

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

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.

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.