Sow Good (NASDAQ:SOWG) versus Advantage Solutions (NASDAQ:ADV) Critical Analysis

Sow Good (NASDAQ:SOWG) and Advantage Solutions (NASDAQ:ADV) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$31.99 million	0.27	-$3.70 million	($1.32)	-0.53
Advantage Solutions	$3.57 billion	0.11	-$326.96 million	($0.94)	-1.24

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

Profitability

This table compares Sow Good and Advantage Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sow Good	-154.31%	-46.08%	-26.61%
Advantage Solutions	-8.72%	-39.45%	-9.63%

Insider and Institutional Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 49.8% of Advantage Solutions shares are held by institutional investors. 50.1% of Sow Good shares are held by company insiders. Comparatively, 7.9% of Advantage Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sow Good and Advantage Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	1	3	0	0	1.75
Advantage Solutions	1	0	1	0	2.00

Sow Good currently has a consensus price target of $4.25, indicating a potential upside of 506.45%. Advantage Solutions has a consensus price target of $2.25, indicating a potential upside of 93.47%. Given Sow Good’s higher possible upside, equities research analysts clearly believe Sow Good is more favorable than Advantage Solutions.

Risk & Volatility

Sow Good has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500. Comparatively, Advantage Solutions has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.

Summary

Advantage Solutions beats Sow Good on 9 of the 14 factors compared between the two stocks.

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.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.