Comparing Farmmi (NASDAQ:FAMI) & Sow Good (NASDAQ:SOWG)

Sow Good (NASDAQ:SOWG) and Farmmi (NASDAQ:FAMI) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Risk & Volatility

Sow Good has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Farmmi has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sow Good and Farmmi”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sow Good	N/A	N/A	-$40.64 million	($16.03)	-0.20
Farmmi	$18.22 million	0.08	-$53.10 million	N/A	N/A

Sow Good has higher earnings, but lower revenue than Farmmi.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	1	0	0	0	1.00
Farmmi	1	0	0	0	1.00

Insider and Institutional Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 0.3% of Farmmi shares are owned by institutional investors. 0.1% of Sow Good shares are owned by company insiders. Comparatively, 1.7% of Farmmi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sow Good and Farmmi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sow Good	N/A	-458.33%	-136.07%
Farmmi	N/A	N/A	N/A

Summary

Farmmi beats Sow Good on 5 of the 7 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 Farmmi

Farmmi, Inc., through its subsidiaries, engages in processing and sale of agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, such as bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondose, coprinus comatus, and hericium erinaceus, as well as dried edible fungi. It is also involved in trading of cotton, corn, and other agricultural products. The company's products are offered under Lishui Shangeng, Farmmi Liangpin, Forasen, and Puyangtang brands. It offers its products through local distributors to processing manufacturers, supermarkets, restaurants, cafeterias, and local specialty stores. The company was founded in 1994 and is headquartered in Lishui, China.