Analyzing Spectrum Brands (NYSE:SPB) and Sow Good (NASDAQ:SOWG)

Sow Good (NASDAQ:SOWG) and Spectrum Brands (NYSE:SPB) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares Sow Good and Spectrum Brands”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	0.29	-$3.70 million	($0.67)	-1.23
Spectrum Brands	$2.96 billion	0.47	$124.80 million	$2.09	27.07

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

Profitability

This table compares Sow Good and Spectrum Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sow Good	-29.42%	-20.77%	-12.05%
Spectrum Brands	2.02%	5.20%	2.87%

Volatility and Risk

Sow Good has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Sow Good and Spectrum Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	3	0	0	2.00
Spectrum Brands	0	2	4	0	2.67

Sow Good presently has a consensus target price of $4.25, suggesting a potential upside of 416.15%. Spectrum Brands has a consensus target price of $85.00, suggesting a potential upside of 50.23%. Given Sow Good’s higher probable upside, analysts clearly believe Sow Good is more favorable than Spectrum Brands.

Institutional and Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. 50.1% of Sow Good shares are owned by insiders. Comparatively, 3.6% of Spectrum Brands shares are owned by 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

Spectrum Brands beats Sow Good on 10 of the 14 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 Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.