Critical Contrast: Nomad Foods (NYSE:NOMD) & Borealis Foods (NASDAQ:BRLS)

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

Valuation & Earnings

This table compares Nomad Foods and Borealis Foods’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomad Foods	$3.29 billion	0.92	$208.56 million	$1.23	15.09
Borealis Foods	N/A	N/A	-$300,000.00	($0.21)	-19.05

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nomad Foods	6.34%	10.41%	4.29%
Borealis Foods	N/A	N/A	-1.68%

Risk & Volatility

Nomad Foods has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500.

Institutional & Insider Ownership

75.3% of Nomad Foods shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 17.3% of Nomad Foods shares are owned by company insiders. Comparatively, 16.2% of Borealis Foods shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nomad Foods and Borealis Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomad Foods	0	0	2	0	3.00
Borealis Foods	0	0	0	0	N/A

Nomad Foods currently has a consensus target price of $23.00, indicating a potential upside of 23.92%. Given Nomad Foods’ higher probable upside, analysts clearly believe Nomad Foods is more favorable than Borealis Foods.

Summary

Nomad Foods beats Borealis Foods on 12 of the 12 factors compared between the two stocks.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.

About Borealis Foods

Borealis Foods Inc. engages in the distribution of plant-based protein food products. The company's product includes Chef Woo, a high-protein meat alternative; and Ramen Express, vegetarian ramen noodles. Borealis Foods Inc. was incorporated in 2020 and is based in Oakville, Canada.