Critical Contrast: Vital Farms (NASDAQ:VITL) versus Borealis Foods (NASDAQ:BRLS)

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

Risk and Volatility

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

Insider & Institutional Ownership

34.7% of Borealis Foods shares are owned by institutional investors. Comparatively, 98.6% of Vital Farms shares are owned by institutional investors. 65.7% of Borealis Foods shares are owned by insiders. Comparatively, 27.6% of Vital Farms shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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 breakdown of current ratings for Borealis Foods and Vital Farms, as reported 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	5	0	2.83

Vital Farms has a consensus target price of $39.20, indicating a potential upside of 1.21%. Given Vital Farms’ stronger consensus rating and higher possible upside, analysts plainly believe Vital Farms is more favorable than Borealis Foods.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	-$1.62 million	-78.72	-$2.94 million	N/A	N/A
Vital Farms	$576.13 million	2.94	$25.57 million	$1.12	34.58

Vital Farms has higher revenue and earnings than Borealis Foods.

Summary

Vital Farms beats Borealis Foods on 11 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.