Comparing Borealis Foods (NASDAQ:BRLS) and Mama’s Creations (NASDAQ:MAMA)

Borealis Foods (NASDAQ:BRLS) and Mama’s Creations (NASDAQ:MAMA) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Borealis Foods and Mama’s Creations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	-62.55%	N/A	-33.81%
Mama’s Creations	3.21%	14.69%	8.91%

Volatility & Risk

Borealis Foods has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Institutional and Insider Ownership

34.7% of Borealis Foods shares are held by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are held by institutional investors. 65.7% of Borealis Foods shares are held by company insiders. Comparatively, 1.0% of Mama’s Creations shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Borealis Foods and Mama’s Creations, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	1	0	0	0	1.00
Mama’s Creations	0	2	4	0	2.67

Mama’s Creations has a consensus target price of $18.80, suggesting a potential upside of 26.09%. Given Mama’s Creations’ stronger consensus rating and higher possible upside, analysts clearly believe Mama’s Creations is more favorable than Borealis Foods.

Earnings & Valuation

This table compares Borealis Foods and Mama’s Creations”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	$30.08 million	1.01	-$18.98 million	($0.89)	-1.58
Mama’s Creations	$171.71 million	3.53	$5.29 million	$0.14	106.50

Mama’s Creations has higher revenue and earnings than Borealis Foods. Borealis Foods is trading at a lower price-to-earnings ratio than Mama’s Creations, indicating that it is currently the more affordable of the two stocks.

Summary

Mama’s Creations beats Borealis Foods on 13 of the 14 factors compared between the two stocks.

About Borealis Foods

Borealis Foods Inc. operates as a food technology company that develops plant-based ready-to-eat meals. The company also developed ambient ready-to-eat high-protein meals for U.S. and global humanitarian food programs. Its products include Chef Woo, a plant based instant ramen meals that provides with 20 grams of plant-based complete protein; and Ramen Express, a vegetarian ramen noodles. The company distributes its products via retail partners across the U.S., Canada, Mexico and Europe and also sells its products online. The company is based in Oakville, Canada.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.