Sadot Group (NASDAQ:SDOT) versus Grocery Outlet (NASDAQ:GO) Head-To-Head Contrast

Sadot Group (NASDAQ:SDOT) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sadot Group and Grocery Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sadot Group	1	0	0	0	1.00
Grocery Outlet	2	11	0	0	1.85

Grocery Outlet has a consensus target price of $10.32, indicating a potential upside of 20.54%. Given Grocery Outlet’s stronger consensus rating and higher possible upside, analysts plainly believe Grocery Outlet is more favorable than Sadot Group.

Volatility and Risk

Sadot Group has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Sadot Group and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sadot Group	-37.82%	-963.54%	-188.85%
Grocery Outlet	-8.08%	5.69%	1.86%

Insider & Institutional Ownership

13.3% of Sadot Group shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 0.4% of Sadot Group shares are owned by company insiders. Comparatively, 4.5% of Grocery Outlet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Sadot Group and Grocery Outlet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sadot Group	$246.90 million	0.03	-$93.39 million	($299.60)	-0.04
Grocery Outlet	$4.69 billion	0.18	-$224.91 million	($3.88)	-2.21

Sadot Group has higher earnings, but lower revenue than Grocery Outlet. Grocery Outlet is trading at a lower price-to-earnings ratio than Sadot Group, indicating that it is currently the more affordable of the two stocks.

Summary

Grocery Outlet beats Sadot Group on 11 of the 13 factors compared between the two stocks.

About Sadot Group

Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.