Financial Review: Vital Farms (NASDAQ:VITL) and Borealis Foods (NASDAQ:BRLS)

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

Insider & Institutional Ownership

98.6% of Vital Farms shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 27.6% of Vital Farms 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

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

Risk & Volatility

Vital Farms has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Farms	$576.13 million	2.95	$25.57 million	$1.12	34.68
Borealis Foods	-$1.62 million	-78.33	-$2.94 million	N/A	N/A

Vital Farms has higher revenue and earnings than Borealis Foods.

Analyst Ratings

This is a summary of recent recommendations for Vital Farms and Borealis Foods, as reported by MarketBeat.com.

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

Vital Farms currently has a consensus price target of $41.00, suggesting a potential upside of 5.56%. Given Vital Farms’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Vital Farms is more favorable than Borealis Foods.

Summary

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

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.

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.