Borealis Foods (NASDAQ:BRLS) versus Freshpet (NASDAQ:FRPT) Critical Review

Borealis Foods (NASDAQ:BRLS) and Freshpet (NASDAQ:FRPT) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

This table compares Borealis Foods and Freshpet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	$30.08 million	1.13	-$25.33 million	($0.86)	-1.85
Freshpet	$1.14 billion	2.13	$139.14 million	$3.74	13.16

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

Insider & Institutional Ownership

34.7% of Borealis Foods shares are held by institutional investors. 16.2% of Borealis Foods shares are held by insiders. Comparatively, 4.3% of Freshpet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	-65.11%	N/A	-31.61%
Freshpet	17.63%	6.22%	4.19%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Borealis Foods and Freshpet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	1	0	0	0	1.00
Freshpet	1	6	11	0	2.56

Freshpet has a consensus price target of $74.88, suggesting a potential upside of 52.15%. Given Freshpet’s stronger consensus rating and higher possible upside, analysts plainly believe Freshpet is more favorable than Borealis Foods.

Volatility and Risk

Borealis Foods has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Freshpet has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Summary

Freshpet beats Borealis Foods on 12 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 Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.