Analyzing Oatly Group (NASDAQ:OTLY) and Borealis Foods (NASDAQ:BRLS)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Oatly Group and Borealis Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oatly Group	1	3	5	0	2.44
Borealis Foods	0	0	0	0	N/A

Oatly Group currently has a consensus target price of $2.11, suggesting a potential upside of 128.05%. Given Oatly Group’s higher probable upside, equities research analysts clearly believe Oatly Group is more favorable than Borealis Foods.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oatly Group	-53.22%	-37.94%	-16.81%
Borealis Foods	N/A	N/A	-1.68%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oatly Group	$783.35 million	0.70	-$416.87 million	($0.85)	-1.09
Borealis Foods	N/A	N/A	-$300,000.00	($0.21)	-23.43

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

Volatility and Risk

Oatly Group has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, Borealis Foods has a beta of -0.16, indicating that its stock price is 116% less volatile than the S&P 500.

Insider and Institutional Ownership

68.2% of Oatly Group shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 1.7% of Oatly Group shares are owned by insiders. Comparatively, 16.2% of Borealis Foods shares are owned 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.

About Oatly Group

Oatly Group AB, an oatmilk company, provides a range of plant-based dairy products made from oats in Europe, the Middle East, Africa, the Americas, and Asia. It offers Barista edition oatmilk, oatgurts, frozen desserts, ice-creams, and yogurts; cooking products, including cooking cream, in regular and organic, Crème Fraiche, whipping cream, vanilla custard, and spreads in a variety of flavors; and ready-to-go drinks. The company was formerly known as Havre Global AB and changed its name to Oatly Group AB in March 2021. Oatly Group AB was founded in 1994 and is headquartered in Malmö, Sweden.

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.