Critical Comparison: Borealis Foods (NASDAQ:BRLS) and Vital Farms (NASDAQ:VITL)

Borealis Foods (NASDAQ:BRLS) and Vital Farms (NASDAQ:VITL) are both small-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

Borealis Foods has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Vital Farms has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	-$1.62 million	-84.53	-$2.94 million	N/A	N/A
Vital Farms	$576.13 million	2.87	$25.57 million	$1.12	33.68

Vital Farms has higher revenue and earnings than Borealis Foods.

Profitability

This table compares Borealis Foods and Vital Farms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	N/A	-28.23%	-3.08%
Vital Farms	8.68%	22.29%	16.13%

Analyst Recommendations

This is a summary of current ratings and target prices for Borealis Foods and Vital Farms, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	0	0	0	0	0.00
Vital Farms	0	1	6	0	2.86

Vital Farms has a consensus target price of $41.00, suggesting a potential upside of 8.70%. Given Vital Farms’ stronger consensus rating and higher possible upside, analysts clearly believe Vital Farms is more favorable than Borealis Foods.

Institutional & Insider Ownership

34.7% of Borealis Foods shares are held by institutional investors. Comparatively, 98.6% of Vital Farms shares are held by institutional investors. 16.2% of Borealis Foods shares are held by insiders. Comparatively, 27.6% of Vital Farms shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Vital Farms beats Borealis Foods on 12 of the 12 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 Vital Farms

Vital Farms, Inc., a food company, provides pasture-raised products in the United States. It offers shell eggs, butter, hard-boiled eggs, and liquid whole eggs. The company was founded in 2007 and is headquartered in Austin, Texas.