Head-To-Head Review: Sow Good (NASDAQ:SOWG) versus Olaplex (NASDAQ:OLPX)

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

Institutional & Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 87.4% of Olaplex shares are owned by institutional investors. 50.1% of Sow Good shares are owned by insiders. Comparatively, 4.2% of Olaplex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sow Good	-154.31%	-46.08%	-26.61%
Olaplex	-0.30%	3.32%	1.71%

Valuation and Earnings

This table compares Sow Good and Olaplex”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	$31.99 million	0.26	-$3.70 million	($1.32)	-0.52
Olaplex	$422.67 million	2.21	$19.52 million	N/A	N/A

Olaplex has higher revenue and earnings than Sow Good.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sow Good and Olaplex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	3	0	0	2.00
Olaplex	0	4	0	0	2.00

Sow Good currently has a consensus price target of $4.25, indicating a potential upside of 519.53%. Olaplex has a consensus price target of $1.75, indicating a potential upside of 25.00%. Given Sow Good’s higher possible upside, equities research analysts plainly believe Sow Good is more favorable than Olaplex.

Risk and Volatility

Sow Good has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Olaplex has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.

Summary

Olaplex beats Sow Good on 9 of the 11 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 Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.