Critical Contrast: Sow Good (NASDAQ:SOWG) versus Central Garden & Pet (NASDAQ:CENTA)

Central Garden & Pet (NASDAQ:CENTA) and Sow Good (NASDAQ:SOWG) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Central Garden & Pet and Sow Good’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	5.42%	11.55%	5.04%
Sow Good	N/A	-78.61%	-41.65%

Analyst Recommendations

This is a breakdown of current recommendations for Central Garden & Pet and Sow Good, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	1	1	3	1	2.67
Sow Good	1	0	0	0	1.00

Central Garden & Pet presently has a consensus price target of $46.67, suggesting a potential upside of 21.37%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Sow Good.

Earnings & Valuation

This table compares Central Garden & Pet and Sow Good”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Garden & Pet	$3.13 billion	0.77	$162.84 million	$2.75	13.98
Sow Good	$31.99 million	1.98	-$40.64 million	($24.59)	-0.13

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

Volatility & Risk

Central Garden & Pet has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

50.8% of Central Garden & Pet shares are owned by institutional investors. Comparatively, 10.7% of Sow Good shares are owned by institutional investors. 20.3% of Central Garden & Pet shares are owned by company insiders. Comparatively, 50.7% of Sow Good shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Central Garden & Pet beats Sow Good on 12 of the 15 factors compared between the two stocks.

About Central Garden & Pet

Central Garden & Pet Co. engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions. The Garden segment includes lawn and garden consumables such as grass, vegetable, flower and herb seed, wild bird feed, bird houses and other birding accessories, weed, grass, and other herbicides, insecticide and pesticide products, fertilizers, and live plants. The company was founded by William E. Brown in 1980 and is headquartered in Walnut Creek, CA.

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.