Sow Good (NASDAQ:SOWG) versus Danone (OTCMKTS:DANOY) Critical Review

Sow Good (NASDAQ:SOWG) and Danone (OTCMKTS:DANOY) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 0.1% of Danone shares are held by institutional investors. 62.3% of Sow Good shares are held by company insiders. Comparatively, 1.0% of Danone shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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, Danone has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Sow Good and Danone, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Danone	0	1	2	0	2.67

Sow Good presently has a consensus target price of $23.00, indicating a potential upside of 97.26%. Given Sow Good’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sow Good is more favorable than Danone.

Profitability

This table compares Sow Good and Danone’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%
Danone	N/A	N/A	N/A

Valuation & Earnings

This table compares Sow Good and Danone”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$41.61 million	2.84	-$3.06 million	($0.35)	-33.31
Danone	$29.89 billion	1.66	$953.42 million	N/A	N/A

Danone has higher revenue and earnings than Sow Good.

Summary

Sow Good beats Danone on 9 of the 11 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 Danone

Danone S.A. operates in the food and beverage industry in Europe, Ukraine, North America, China, North Asia, the Oceania, Latin America, rest of Asia, Africa, Turkey, the Middle East, and the Commonwealth of Independent States. The company operates through Essential Dairy & Plant-Based, Specialized Nutrition, and Waters segments. It produces and distributes yogurts, dairy products, coffee creamers and drinks, beverages, plant-based products, ice creams, frozen desserts, and cheese products under the Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, Danone, Light & Fit, Oikos, YoPRO, International Delight, SToK, Silk, Follow Your Heart, and So Delicious. The company also provides specialized nutrition, including formulas and complementary feeding for babies and young children; and special medical purposes food for children and adults under the Aptamil, Nutrilon, Gallia, Cow & Gate, Bebelac, and Blédina brands. In addition, it offers tube feeding products under the Nutrison name; and oral nutritional supplements under the Fortimel and NutriDrink names. Further, the company provides mineral waters from natural sources, waters infused with natural fruit extracts, fruit juices, and vitamins under the evian, Volvic, AQUA, Mizone, Bonafont, Salus, Hayat, Sirma, Font Vella, Lanjarón, and Zywiec Zdroj brands. It distributes its products through retail chains and traditional market outlets; convenience stores; hotels, restaurants, and coffee outlets; hospitals, clinics, and pharmacies; and e-commerce channels. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.