Analyzing Sow Good (OTCMKTS:SOWG) and Premier Foods (OTCMKTS:PFODF)

Sow Good (OTCMKTS:SOWG) and Premier Foods (OTCMKTS:PFODF) are both consumer defensive companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Sow Good and Premier Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Premier Foods	0	0	0	0	0.00

Sow Good presently has a consensus target price of $17.50, indicating a potential upside of 383.43%. Given Sow Good’s stronger consensus rating and higher possible upside, analysts plainly believe Sow Good is more favorable than Premier Foods.

Institutional and Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 32.0% of Premier Foods shares are owned by institutional investors. 62.3% of Sow Good shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sow Good and Premier Foods’ 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%
Premier Foods	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$40.13 million	0.92	-$3.06 million	$0.25	14.48
Premier Foods	N/A	N/A	N/A	($0.72)	-3.45

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

Summary

Sow Good beats Premier Foods 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 Premier Foods

Premier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally. The company operates through Grocery, Sweet Treats, and international segments. It offers a portfolio of product categories, including flavorings and seasonings under the Bisto, OXO, Paxo, and Saxa brands; cooking sauces and accompaniments under the Sharwood's, Loyd Grossman, Spice Tailor and Homepride brands; quick meals, snacks, and soups under the Batchelors and Smash brands; ambient desserts under the Ambrosia, Bird's, and Angel Delight brands; and ambient cakes under the Mr Kipling and Cadbury brands. The company also provides dumplings under the Atora brand name; plain flour under the Be-Ro brand; dried milk under the Marvel brand name; plain and self-raising flour under the McDougalls brand; and plant based food under the Plantastic brand name. It offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through e-commerce channels. The company was founded in 1975 and is headquartered in Saint Albans, the United Kingdom.