Reviewing Sadot Group (NASDAQ:SDOT) & Grocery Outlet (NASDAQ:GO)

Sadot Group (NASDAQ:SDOT) and Grocery Outlet (NASDAQ:GO) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

13.3% of Sadot Group shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 0.4% of Sadot Group shares are owned by insiders. Comparatively, 4.5% of Grocery Outlet shares are owned 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.

Valuation and Earnings

This table compares Sadot Group and Grocery Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sadot Group	$246.90 million	0.01	-$93.39 million	($14.98)	-0.21
Grocery Outlet	$4.69 billion	0.17	-$224.91 million	($3.88)	-2.11

Sadot Group has higher earnings, but lower revenue than Grocery Outlet. Grocery Outlet is trading at a lower price-to-earnings ratio than Sadot Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sadot Group and Grocery Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sadot Group	1	0	0	0	1.00
Grocery Outlet	2	11	0	0	1.85

Grocery Outlet has a consensus price target of $10.32, indicating a potential upside of 25.99%. Given Grocery Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Grocery Outlet is more favorable than Sadot Group.

Volatility and Risk

Sadot Group has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Sadot Group and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sadot Group	-37.82%	-963.54%	-188.85%
Grocery Outlet	-8.08%	5.69%	1.86%

Summary

Grocery Outlet beats Sadot Group on 11 of the 13 factors compared between the two stocks.

About Sadot Group

Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.