Danone (OTCMKTS:DANOY) & Sow Good (NASDAQ:SOWG) Critical Review

Danone (OTCMKTS:DANOY) and Sow Good (NASDAQ:SOWG) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

Danone has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Danone and Sow Good, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danone	0	1	2	0	2.67
Sow Good	0	0	2	0	3.00

Sow Good has a consensus target price of $23.00, indicating a potential upside of 97.26%. Given Sow Good’s stronger consensus rating and higher probable upside, analysts plainly believe Sow Good is more favorable than Danone.

Institutional & Insider Ownership

0.1% of Danone shares are owned by institutional investors. Comparatively, 10.7% of Sow Good shares are owned by institutional investors. 1.0% of Danone shares are owned by insiders. Comparatively, 62.3% of Sow Good shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Danone 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
Danone	$29.89 billion	1.66	$953.42 million	N/A	N/A
Sow Good	$41.61 million	2.84	-$3.06 million	($0.35)	-33.31

Danone has higher revenue and earnings than Sow Good.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Danone	N/A	N/A	N/A
Sow Good	13.24%	37.94%	17.90%

Summary

Sow Good beats Danone on 9 of the 11 factors compared between the two stocks.

About Danone

Danone S.A. operates in the food and beverage industry in Europe, Ukraine, North America, China, North Asia, the Oceania, Latin America, rest of Asia, Africa, Turkey, the Middle East, and the Commonwealth of Independent States. The company operates through Essential Dairy & Plant-Based, Specialized Nutrition, and Waters segments. It produces and distributes yogurts, dairy products, coffee creamers and drinks, beverages, plant-based products, ice creams, frozen desserts, and cheese products under the Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, Danone, Light & Fit, Oikos, YoPRO, International Delight, SToK, Silk, Follow Your Heart, and So Delicious. The company also provides specialized nutrition, including formulas and complementary feeding for babies and young children; and special medical purposes food for children and adults under the Aptamil, Nutrilon, Gallia, Cow & Gate, Bebelac, and Blédina brands. In addition, it offers tube feeding products under the Nutrison name; and oral nutritional supplements under the Fortimel and NutriDrink names. Further, the company provides mineral waters from natural sources, waters infused with natural fruit extracts, fruit juices, and vitamins under the evian, Volvic, AQUA, Mizone, Bonafont, Salus, Hayat, Sirma, Font Vella, Lanjarón, and Zywiec Zdroj brands. It distributes its products through retail chains and traditional market outlets; convenience stores; hotels, restaurants, and coffee outlets; hospitals, clinics, and pharmacies; and e-commerce channels. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.

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.