Sovos Brands (NASDAQ:SOVO) vs. Ridley (OTCMKTS:RIDYF) Financial Review

Sovos Brands (NASDAQ:SOVO) and Ridley (OTCMKTS:RIDYF) are both consumer defensive companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Sovos Brands and Ridley, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sovos Brands	0	7	1	0	2.13
Ridley	0	0	0	0	N/A

Sovos Brands currently has a consensus price target of $23.06, indicating a potential upside of 0.36%. Given Sovos Brands’ higher probable upside, analysts clearly believe Sovos Brands is more favorable than Ridley.

Valuation and Earnings

This table compares Sovos Brands and Ridley’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sovos Brands	$1.02 billion	2.29	$30.17 million	$0.29	79.24
Ridley	N/A	N/A	N/A	$0.06	25.96

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

Institutional and Insider Ownership

9.4% of Ridley shares are owned by institutional investors. 8.1% of Sovos Brands shares are owned 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.

Profitability

This table compares Sovos Brands and Ridley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sovos Brands	2.96%	16.33%	6.96%
Ridley	N/A	N/A	N/A

Summary

Sovos Brands beats Ridley on 9 of the 10 factors compared between the two stocks.

About Sovos Brands

Sovos Brands, Inc., through its subsidiaries, operates as a consumer-packaged food company that manufactures, distributes, and sells consumer food products in the United States. It operates in two segments, Dinner and Sauces, and Breakfast and Snacks. The company's principal products comprise pasta sauces, dry pasta, soups, frozen entrees, frozen pizza, yogurts, pancake and waffle mixes, other baking mixes, and frozen waffles under the Rao's, Michael Angelo's, and noosa brands. It sells its products principally to retail outlets and wholesale distributors, including traditional supermarkets, mass merchants, warehouse clubs, wholesalers, specialty food distributors, and military commissaries, as well as non-food outlets, including drug store chains, dollar stores, and e-commerce retailers. Sovos Brands, Inc. was incorporated in 2017 and is headquartered in Louisville, Colorado. As of March 12, 2024, Sovos Brands, Inc. operates as a subsidiary of Campbell Soup Company.

About Ridley

Ridley Corporation Limited, together with its subsidiaries, provides animal nutrition solutions in Australia. It operates through two segments, Packaged Feeds and Ingredients, and Bulk Stockfeeds. The company provides feeds for horses, chicken and poultry dairy cattle, beef cattle, sheep, goats, alpacas, llamas, kangaroos and wallabies, guinea pigs, rats, and mice; monogastric and ruminant commercial feeds; aquafeed for salmon, prawns, barramundi, yellowtail kingfish, and trout, as well as mulloway, silver perch, and other native species; and rendered poultry, red meat, and fish products. It offers its products primarily under the Ridley, Barastoc, Cobber, Rumevite, Primo, Monds Feed, LNT, and PALASTART brands. The company also exports its products. Ridley Corporation Limited was incorporated in 1987 and is headquartered in Melbourne, Australia.