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Sovos Brands (NASDAQ:SOVO) Versus Very Good Food (NASDAQ:VGFC) Financial Survey

Defense World ·  Sep 26, 2022 02:12

Sovos Brands (NASDAQ:SOVO – Get Rating) and Very Good Food (NASDAQ:VGFC – Get Rating) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Sovos Brands and Very Good Food's net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Sovos Brands -4.47% 9.21% 3.97%
Very Good Food -406.44% -163.04% -71.29%

Analyst Ratings

This is a breakdown of recent ratings for Sovos Brands and Very Good Food, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sovos Brands 0 0 12 0 3.00
Very Good Food 0 0 0 0 N/A
Sovos Brands currently has a consensus price target of $17.73, suggesting a potential upside of 25.73%. Given Sovos Brands' higher possible upside, analysts clearly believe Sovos Brands is more favorable than Very Good Food.

Institutional and Insider Ownership

92.1% of Sovos Brands shares are owned by institutional investors. 9.2% of Sovos Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sovos Brands and Very Good Food's gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sovos Brands $719.19 million 1.98 $1.92 million ($0.36) -39.17
Very Good Food $9.78 million N/A -$43.53 million ($0.30) -0.46

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

Summary

Sovos Brands beats Very Good Food on 9 of the 11 factors compared between the two stocks.

About Sovos Brands

(Get Rating)

Sovos Brands, Inc., through its subsidiaries, manufactures and distributes consumer food products in the United States. The company operates in two segments, Dinners & Sauces, and Breakfast & Snacks. It provides pasta sauces, dry pasta, soups, frozen entrees, yogurts, pancake and waffle mixes, other baking mixes, and frozen waffles under the Rao's, Michael Angelo's, noosa, and Birch Benders brands. The company sells its products principally to retail outlets and wholesale distributors, including traditional supermarkets, mass merchants, warehouse clubs, wholesalers, specialty food distributors, military commissaries, and non-food outlets, such as drug store chains, dollar stores, and e-commerce retailers. Sovos Brands, Inc. was founded in 1983 and is headquartered in Louisville, Colorado.

About Very Good Food

(Get Rating)

The Very Good Food Company Inc., together with its subsidiaries, designs, develops, produces, distributes, and sells various plant-based cheese, meats, and other food alternatives. The company offers its products through its wholesale and e-commerce stores, and public markets, as well as the Butcher Shop & Restaurant under The Very Good Butchers brand. The company provides plant-based cheese brands comprising Bold Cheddah, a white cheddar style vegan cheese; Cheedah, a medium cheddar style vegan cheese; Dill'ish, a garlic and dill-havarti style vegan cheese; Goud AF, a smoky gouda style vegan cheese; and Pepper Jack, a monterey jack style vegan cheese. It also offers plant-based meat products comprising a line of sausages, steaks, burgers, and meatballs that is gluten-free, soy-free, and Non-GMO verified under Butcher's Select and The Very Good Butchers brands. The company distributes and sells its products in 10 provinces and three territories in Canada and 50 states in the United States through eCommerce, wholesale, and company owned butcher shops and restaurants operated under Victoria Flagship Store name located in Victoria, Canada. The company was formerly known as The Very Good Butchers Inc. and changed its name to The Very Good Food Company Inc. in October 2019. The Very Good Food Company Inc. was incorporated in 2016 and is headquartered in Vancouver, Canada.

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