Analyzing Sow Good (NASDAQ:SOWG) and Pigeon (OTCMKTS:PGENY)

Pigeon (OTCMKTS:PGENY) and Sow Good (NASDAQ:SOWG) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Pigeon and Sow Good, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pigeon	0	0	0	0	0.00
Sow Good	0	3	0	0	2.00

Sow Good has a consensus target price of $4.25, indicating a potential upside of 386.60%. Given Sow Good’s stronger consensus rating and higher possible upside, analysts clearly believe Sow Good is more favorable than Pigeon.

Risk and Volatility

Pigeon has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pigeon	8.33%	10.85%	8.49%
Sow Good	-29.42%	-20.77%	-12.05%

Insider and Institutional Ownership

10.7% of Sow Good shares are held by institutional investors. 50.1% of Sow Good shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pigeon	$688.99 million	1.98	$55.26 million	$0.12	23.75
Sow Good	$31.99 million	0.31	-$3.70 million	($0.67)	-1.30

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

Summary

Pigeon beats Sow Good on 8 of the 13 factors compared between the two stocks.

About Pigeon

Pigeon Corporation, together with its subsidiaries, engages in the manufacture, sale, import, and export of baby and child-care products, maternity items, women’s care products, home healthcare products, and nursing care products in Japan and internationally. The company operates in four segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. The company is involved in the provision of baby and mother care products, such as nursing bottles and nipples, toiletries, breast pads, breast pumps, nipple care products, breast milk storage bags, and breastfeeding-related products under Pigeon and Lansinoh brands. It also offers non-woven products, baby strollers, aging-prevention products, wet wipes, skincare products, cleaning and disinfecting products, and elder care products and services. In addition, the company provides child-minding and daycare services, in-home nursing care support services, outpatient care facility services, operation of in-company childcare facilities, daycare services, event childcare services, babysitter dispatch services, preschool education services, and at-home elder care services. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

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.