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

Mama’s Creations (NASDAQ:MAMA) and Borealis Foods (NASDAQ:BRLS) 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 risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mama’s Creations	$171.71 million	3.57	$5.29 million	$0.12	125.63
Borealis Foods	$27.67 million	1.11	-$25.33 million	($0.86)	-1.67

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.

Volatility and Risk

Mama’s Creations has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mama’s Creations	3.06%	15.31%	8.85%
Borealis Foods	-65.11%	N/A	-31.61%

Analyst Ratings

This is a breakdown of current ratings and target prices for Mama’s Creations and Borealis Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mama’s Creations	0	1	5	0	2.83
Borealis Foods	1	0	0	0	1.00

Mama’s Creations currently has a consensus target price of $18.80, indicating a potential upside of 24.71%. Given Mama’s Creations’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Mama’s Creations is more favorable than Borealis Foods.

Institutional and Insider Ownership

45.2% of Mama’s Creations shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 6.5% of Mama’s Creations shares are owned by insiders. Comparatively, 65.7% of Borealis Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

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.

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.