Analyzing Sow Good (NASDAQ:SOWG) and Beyond Meat (NASDAQ:BYND)

Sow Good (NASDAQ:SOWG) and Beyond Meat (NASDAQ:BYND) 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 earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Earnings and Valuation

This table compares Sow Good and Beyond Meat”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$16.07 million	6.75	-$3.06 million	($0.35)	-30.28
Beyond Meat	$343.38 million	1.28	-$338.14 million	($5.16)	-1.31

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

Volatility and Risk

Sow Good has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Beyond Meat has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500.

Institutional and Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 52.5% of Beyond Meat shares are owned by institutional investors. 62.3% of Sow Good shares are owned by company insiders. Comparatively, 8.6% of Beyond Meat 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sow Good	13.24%	37.94%	17.90%
Beyond Meat	-98.95%	N/A	-26.84%

Analyst Ratings

This is a summary of current recommendations for Sow Good and Beyond Meat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Beyond Meat	5	3	0	0	1.38

Sow Good presently has a consensus price target of $23.00, indicating a potential upside of 116.98%. Beyond Meat has a consensus price target of $5.36, indicating a potential downside of 20.63%. Given Sow Good’s stronger consensus rating and higher possible upside, research analysts plainly believe Sow Good is more favorable than Beyond Meat.

Summary

Sow Good beats Beyond Meat on 10 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 Beyond Meat

Beyond Meat, Inc., a plant-based meat company, develops, manufactures, markets, and sells plant-based meat products in the United States and internationally. The company sells a range of plant-based meat products across the platforms of beef, pork, and poultry. It sells its products through grocery, mass merchandiser, club stores, and natural retailer channels, as well as various food-away-from-home channels, including restaurants, foodservice outlets, and schools. The company was formerly known as Savage River, Inc. and changed its name to Beyond Meat, Inc. in September 2018. Beyond Meat, Inc. was incorporated in 2008 and is headquartered in El Segundo, California.