Sow Good (NASDAQ:SOWG – Get Free Report) and Traeger (NYSE:COOK – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Sow Good and Traeger, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sow Good | 0 | 3 | 0 | 0 | 2.00 |
| Traeger | 1 | 5 | 1 | 0 | 2.00 |
Sow Good currently has a consensus target price of $4.25, indicating a potential upside of 468.94%. Traeger has a consensus target price of $2.13, indicating a potential upside of 46.05%. Given Sow Good’s higher possible upside, analysts plainly believe Sow Good is more favorable than Traeger.
Risk and Volatility
Earnings & Valuation
This table compares Sow Good and Traeger”s top-line revenue, earnings per share 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 | ($1.32) | -0.57 |
| Traeger | $604.07 million | 0.33 | -$34.01 million | ($0.27) | -5.39 |
Sow Good has higher earnings, but lower revenue than Traeger. Traeger is trading at a lower price-to-earnings ratio than Sow Good, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sow Good and Traeger’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% |
| Traeger | -6.02% | -5.67% | -1.93% |
Institutional & Insider Ownership
10.7% of Sow Good shares are owned by institutional investors. Comparatively, 46.8% of Traeger shares are owned by institutional investors. 50.1% of Sow Good shares are owned by company insiders. Comparatively, 14.7% of Traeger shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Traeger beats Sow Good on 8 of the 13 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 Traeger
Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.
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