Comparing Nestlé (OTCMKTS:NSRGY) & Sow Good (NASDAQ:SOWG)

Sow Good (NASDAQ:SOWG) and Nestlé (OTCMKTS:NSRGY) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Volatility & Risk

Sow Good has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Nestlé has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sow Good and Nestlé, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	0	2	0	3.00
Nestlé	2	6	1	0	1.89

Sow Good presently has a consensus target price of $23.00, suggesting a potential upside of 25.48%. Given Sow Good’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sow Good is more favorable than Nestlé.

Profitability

This table compares Sow Good and Nestlé’s 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%
Nestlé	N/A	N/A	N/A

Insider & Institutional Ownership

10.7% of Sow Good shares are held by institutional investors. Comparatively, 0.6% of Nestlé shares are held by institutional investors. 62.3% of Sow Good 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.

Earnings and Valuation

This table compares Sow Good and Nestlé’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	$16.07 million	11.57	-$3.06 million	($0.35)	-52.37
Nestlé	$103.54 billion	2.52	$12.49 billion	N/A	N/A

Nestlé has higher revenue and earnings than Sow Good.

Summary

Sow Good beats Nestlé on 7 of the 12 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 Nestlé

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.