Contrasting Real Good Food (NASDAQ:RGF) and Borealis Foods (NASDAQ:BRLS)

Borealis Foods (NASDAQ:BRLS) and Real Good Food (NASDAQ:RGF) 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, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

34.7% of Borealis Foods shares are held by institutional investors. Comparatively, 55.5% of Real Good Food shares are held by institutional investors. 16.2% of Borealis Foods shares are held by insiders. Comparatively, 24.6% of Real Good Food shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Borealis Foods and Real Good Food”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	N/A	N/A	-$2.94 million	N/A	N/A
Real Good Food	$156.38 million	0.06	-$10.98 million	($2.07)	-0.15

Borealis Foods has higher earnings, but lower revenue than Real Good Food.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	N/A	-108.01%	-7.73%
Real Good Food	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Borealis Foods and Real Good Food, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	0	0	0	0	N/A
Real Good Food	0	1	1	0	2.50

Real Good Food has a consensus price target of $5.00, indicating a potential upside of 1,565.56%. Given Real Good Food’s higher possible upside, analysts clearly believe Real Good Food is more favorable than Borealis Foods.

Volatility & Risk

Borealis Foods has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Real Good Food has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Summary

Real Good Food beats Borealis Foods on 7 of the 9 factors compared between the two stocks.

About Borealis Foods

Borealis Foods Inc. engages in the distribution of plant-based protein food products. Its products include Chef Woo, a high-protein instant ramen with 20 grams of plant-based complete protein; and Ramen Express, a vegetarian ramen noodles. The company is based in Oakville, Canada.

About Real Good Food

The Real Good Food Company, Inc., through its subsidiary, operates as a health and wellness focused frozen food company in the United States. The company develops, manufactures, and markets foods designed to be high in protein, low in sugar, and made from gluten- and grain-free ingredients. It offers comfort foods, such as bacon wrapped stuffed chicken, chicken enchiladas, grain-free cheesy bread breakfast sandwiches, and various entrée bowls under the Realgood Foods Co. brand name, as well as sells private-label products. The company serves retailers, which primarily sell its products through natural and conventional grocery, drug, club, and mass merchandise stores. It also sells its products through its e-commerce channel, which includes direct-to-consumer sales through its website, as well as through its retail customers' online platforms. The company was formerly known as Project Clean, Inc. and changed its name to The Real Good Food Company, Inc. in October 2021. The Real Good Food Company, Inc. was founded in 2016 and is based in Cherry Hill, New Jersey.