Contrasting Sow Good (NASDAQ:SOWG) and B&G Foods (NYSE:BGS)

Sow Good (NASDAQ:SOWG) and B&G Foods (NYSE:BGS) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Sow Good and B&G Foods’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$27.28 million	7.44	-$3.06 million	($0.35)	-57.20
B&G Foods	$2.06 billion	0.31	-$66.20 million	($1.44)	-5.70

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sow Good and B&G Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
B&G Foods	1	2	0	0	1.67

Sow Good presently has a consensus target price of $23.00, suggesting a potential upside of 14.89%. B&G Foods has a consensus target price of $9.50, suggesting a potential upside of 15.78%. Given B&G Foods’ higher possible upside, analysts clearly believe B&G Foods is more favorable than Sow Good.

Institutional and Insider Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 66.2% of B&G Foods shares are held by institutional investors. 62.3% of Sow Good shares are held by insiders. Comparatively, 3.2% of B&G Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Sow Good has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, B&G Foods has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Sow Good and B&G Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sow Good	-4.21%	-19.26%	-6.42%
B&G Foods	-5.42%	8.33%	1.91%

Summary

Sow Good beats B&G Foods on 8 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 B&G Foods

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. The company's products include frozen and canned vegetables, vegetables, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, crackers, baking powder and soda, corn starch, nut clusters, and other specialty products. It markets its products under various brands, including Ac'cent, B&G, B&M, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Grandma's Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, McCann's, Molly McButter, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, Spice Islands, Spring Tree, Sugar Twin, Tone's, Trappey's, TrueNorth, Underwood, Vermont Maid, Victoria, Weber, and Wright's. The company also sells, markets, and distributes household products under the Static Guard brand. It sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, foodservice outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1822 and is headquartered in Parsippany, New Jersey.