Critical Contrast: Very Good Food (NASDAQ:VGFC) and Sovos Brands (NASDAQ:SOVO)

Very Good Food (NASDAQ:VGFCGet Rating) and Sovos Brands (NASDAQ:SOVOGet Rating) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Profitability

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

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

Institutional & Insider Ownership

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Very Good Food 0 0 0 0 N/A
Sovos Brands 0 0 12 0 3.00

Sovos Brands has a consensus target price of $17.73, indicating a potential upside of 24.14%. Given Sovos Brands’ higher probable upside, analysts clearly believe Sovos Brands is more favorable than Very Good Food.

Earnings and Valuation

This table compares Very Good Food and Sovos Brands’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Very Good Food $9.78 million N/A -$43.53 million ($0.30) -0.45
Sovos Brands $719.19 million 2.00 $1.92 million ($0.36) -39.67

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 10 factors compared between the two stocks.

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.

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.

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