Reviewing Traeger (NYSE:COOK) & Sow Good (NASDAQ:SOWG)

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

Institutional & Insider Ownership

46.8% of Traeger shares are held by institutional investors. Comparatively, 10.7% of Sow Good shares are held by institutional investors. 14.7% of Traeger shares are held by company insiders. Comparatively, 50.1% of Sow Good shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$604.07 million	0.28	-$34.01 million	($0.27)	-4.69
Sow Good	$31.99 million	0.30	-$3.70 million	($1.32)	-0.60

Sow Good has lower revenue, but higher earnings 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.

Risk and Volatility

Traeger has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Traeger and Sow Good, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	1	5	1	0	2.00
Sow Good	0	3	0	0	2.00

Traeger presently has a consensus price target of $2.13, indicating a potential upside of 67.98%. Sow Good has a consensus price target of $4.25, indicating a potential upside of 434.52%. Given Sow Good’s higher probable upside, analysts plainly believe Sow Good is more favorable than Traeger.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Traeger	-6.02%	-5.67%	-1.93%
Sow Good	-154.31%	-46.08%	-26.61%

Summary

Traeger beats Sow Good on 7 of the 13 factors compared between the two stocks.

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.

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.