Sow Good (NASDAQ:SOWG) vs. RealReal (NASDAQ:REAL) Head-To-Head Contrast

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

Volatility and Risk

Sow Good has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, RealReal has a beta of 2.48, suggesting that its share price is 148% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sow Good and RealReal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sow Good	0	3	0	0	2.00
RealReal	0	1	3	1	3.00

Sow Good presently has a consensus price target of $4.25, suggesting a potential upside of 513.98%. RealReal has a consensus price target of $11.13, suggesting a potential upside of 45.81%. Given Sow Good’s higher possible upside, equities research analysts plainly believe Sow Good is more favorable than RealReal.

Profitability

This table compares Sow Good and RealReal’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%
RealReal	-5.55%	N/A	-8.90%

Valuation & Earnings

This table compares Sow Good and RealReal”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
RealReal	$600.48 million	1.46	-$134.20 million	($1.06)	-7.20

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

Institutional & Insider Ownership

10.7% of Sow Good shares are owned by institutional investors. Comparatively, 64.7% of RealReal shares are owned by institutional investors. 50.1% of Sow Good shares are owned by company insiders. Comparatively, 9.0% of RealReal 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

RealReal beats Sow Good on 11 of the 15 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 RealReal

The RealReal, Inc. operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.