Critical Review: Sow Good (SOWG) versus Its Rivals

Sow Good (OTCMKTS:SOWG) is one of 38 public companies in the “Food & kindred products” industry, but how does it contrast to its competitors? We will compare Sow Good to related companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.

Analyst Recommendations

This is a summary of current ratings for Sow Good and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	0	0	N/A
Sow Good Competitors	306	1213	1414	25	2.39

As a group, “Food & kindred products” companies have a potential upside of 21.14%. Given Sow Good’s competitors higher possible upside, analysts clearly believe Sow Good has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Sow Good and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sow Good	$16.07 million	-$3.06 million	-14.36
Sow Good Competitors	$7.93 billion	$734.60 million	4.29

Sow Good’s competitors have higher revenue and earnings than Sow Good. Sow Good is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Sow Good and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sow Good	-19.05%	-91.69%	-23.25%
Sow Good Competitors	-29.31%	-29.24%	-7.81%

Institutional & Insider Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 50.6% of shares of all “Food & kindred products” companies are held by institutional investors. 84.7% of Sow Good shares are held by insiders. Comparatively, 18.2% of shares of all “Food & kindred products” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Sow Good has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, Sow Good’s competitors have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.

Summary

Sow Good competitors beat Sow Good on 7 of the 10 factors compared.

About Sow Good

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