Interparfums (NASDAQ:IPAR) & Sow Good (NASDAQ:SOWG) Financial Analysis

Interparfums (NASDAQ:IPAR) and Sow Good (NASDAQ:SOWG) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.03%	16.45%	11.14%
Sow Good	-154.31%	-46.08%	-26.61%

Earnings & Valuation

This table compares Interparfums and Sow Good”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.45 billion	2.10	$164.36 million	$4.99	19.05
Sow Good	$31.99 million	0.28	-$3.70 million	($1.32)	-0.56

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

Institutional and Insider Ownership

55.6% of Interparfums shares are held by institutional investors. Comparatively, 10.7% of Sow Good shares are held by institutional investors. 43.7% of Interparfums shares are held by insiders. Comparatively, 50.1% of Sow Good shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Interparfums and Sow Good, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	1	4	0	2.80
Sow Good	1	3	0	0	1.75

Interparfums currently has a consensus target price of $162.00, indicating a potential upside of 70.44%. Sow Good has a consensus target price of $4.25, indicating a potential upside of 471.62%. Given Sow Good’s higher possible upside, analysts clearly believe Sow Good is more favorable than Interparfums.

Risk & Volatility

Interparfums has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Sow Good has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Summary

Interparfums beats Sow Good on 11 of the 14 factors compared between the two stocks.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.

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.