Financial Review: Lifeway Foods (NASDAQ:LWAY) & Sow Good (NASDAQ:SOWG)

Sow Good (NASDAQ:SOWGGet Free Report) and Lifeway Foods (NASDAQ:LWAYGet Free Report) are both small-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares Sow Good and Lifeway Foods’ 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%
Lifeway Foods 4.48% 12.66% 9.29%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sow Good and Lifeway Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sow Good 1 0 0 0 1.00
Lifeway Foods 0 1 2 1 3.00

Lifeway Foods has a consensus price target of $34.00, suggesting a potential upside of 31.00%. Given Lifeway Foods’ stronger consensus rating and higher possible upside, analysts clearly believe Lifeway Foods is more favorable than Sow Good.

Valuation & Earnings

This table compares Sow Good and Lifeway 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 $31.99 million 2.17 -$40.64 million ($16.03) -0.22
Lifeway Foods $242.41 million 1.62 $13.86 million $0.70 37.08

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

Risk & Volatility

Sow Good has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Lifeway Foods has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Institutional and Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 36.4% of Lifeway Foods shares are owned by institutional investors. 0.1% of Sow Good shares are owned by company insiders. Comparatively, 18.6% of Lifeway Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Lifeway Foods beats Sow Good on 13 of the 15 factors compared between the two stocks.

About Sow Good

(Get Free Report)

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 Lifeway Foods

(Get Free Report)

Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types. The company offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; drinkable yogurt; and fresh made butter and sour cream. It sells its products under the Lifeway, GlenOaks Farms, and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors. Lifeway Foods, Inc. was incorporated in 1986 and is based in Morton Grove, Illinois.

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