Premium Brands (OTCMKTS:PRBZF) versus Sow Good (OTCMKTS:SOWG) Critical Survey

Sow Good (OTCMKTS:SOWG) and Premium Brands (OTCMKTS:PRBZF) are both consumer defensive companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 33.5% of Premium Brands shares are held by institutional investors. 62.3% of Sow Good shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sow Good and Premium Brands’ 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%
Premium Brands	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$40.13 million	0.71	-$3.06 million	$0.25	11.16
Premium Brands	N/A	N/A	N/A	$0.51	111.95

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sow Good and Premium Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Premium Brands	0	2	1	0	2.33

Sow Good currently has a consensus target price of $17.50, suggesting a potential upside of 527.24%. Premium Brands has a consensus target price of $103.67, suggesting a potential upside of 82.67%. Given Sow Good’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sow Good is more favorable than Premium Brands.

Summary

Premium Brands beats Sow Good on 6 of the 11 factors compared between the two stocks.

About Sow Good

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

About Premium Brands

Premium Brands Holdings Corporation, through its subsidiaries, manufactures and distributes food products primarily in Canada and the United States. It operates in two segments, Specialty Foods and Premium Food Distribution. The company provides processed meat, deli products, meat snacks, beef jerky and halal, sandwiches, pastries, specialty and gourmet products, entrees, panini, wraps, subs, hamburgers, burgers, salads and kettle products, muffins, breads, pastas, pizza, and baking and sushi products. It is also involved in the distribution of food products, including meat and seafood products; operation of retail/convenience store and concessionary; and provision of seafood processing services. The company operates under the brand names Harvest Meats, Hempler's, Piller's, Grimm's Fine Foods, Freybe, Isernio's, Expresco, SJ Fine Foods, McSweeney's, Made Rite, Direct Plus, Oberto, Belmont Meats, Conte Foods, SK Food Group, Hygaard, Quality Fast Foods, HQ Fine Foods, Creekside Custom Foods, Stuyver's, Bread Garden Express, and Duso's, as well as Gourmet Chef, Island City Baking, Skilcor, Leadbetter's, Concord Meats, Mclean Meats, Buddy's Kitchen, Raybern's, Leonetti's, Partner's Crackers, Shaw Crackers, Country Prime Meats, Lou's Kitchen, Yorkshire Valley Farms, Golden Valley Farms, Maid-Rite, King's Command Foods, etc. The company was founded in 1917 and is based in Richmond, Canada.