Financial Contrast: Sow Good (OTCMKTS:SOWG) versus Aryzta (OTCMKTS:ARZTF)

Aryzta (OTCMKTS:ARZTF) and Sow Good (OTCMKTS:SOWG) are both consumer defensive companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Institutional and Insider Ownership

44.2% of Aryzta shares are held by institutional investors. Comparatively, 10.7% of Sow Good shares are held by institutional investors. 62.3% of Sow Good shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Aryzta and Sow Good, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aryzta	0	0	0	0	N/A
Sow Good	0	0	2	0	3.00

Sow Good has a consensus target price of $17.50, suggesting a potential downside of 20.56%. Given Sow Good’s higher probable upside, analysts clearly believe Sow Good is more favorable than Aryzta.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aryzta	N/A	N/A	N/A
Sow Good	-19.05%	-91.69%	-23.25%

Valuation and Earnings

This table compares Aryzta and Sow Good’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aryzta	N/A	N/A	N/A	C$1.18	1.60
Sow Good	$27.28 million	8.19	-$3.06 million	($0.35)	-62.94

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

Summary

Aryzta beats Sow Good on 6 of the 10 factors compared between the two stocks.

About Aryzta

ARYZTA AG provides products and services for in-store bakery solutions in Europe and internationally. It offers pastries, cookies, buns, bread, rolls, artisan loaves, sweet baked goods, morning goods, and savory and other products. The company is also involved in asset management services; and distribution of food products. It serves large retail, convenience, and independent retailers, as well as quick service restaurants and other foodservice customers under the Hiestand, Mette Munk, Pre Pain, Cuisine de France, Coup de Pates, La Carte, Oh My Sweetness, and Fornetti brands. ARYZTA AG was incorporated in 2023 and is headquartered in Schlieren, Switzerland.

About Sow Good

Sow Good Inc. produces and sells freeze-dried candy, snacks, smoothies, and granola in the United States. It markets its products through direct-to-consumer focused websites, as well as through the business-to-business sales channels. The company 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 incorporated in 2010 and is based in Irving, Texas.