Financial Analysis: Borealis Foods (BRLS) versus Its Competitors

Borealis Foods (NASDAQ:BRLS) is one of 38 public companies in the “Food & kindred products” industry, but how does it contrast to its peers? We will compare Borealis Foods to related companies based on the strength of its valuation, profitability, analyst recommendations, dividends, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current ratings and target prices for Borealis Foods and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	0	0	0	0	N/A
Borealis Foods Competitors	320	1293	1491	30	2.39

As a group, “Food & kindred products” companies have a potential upside of 20.80%. Given Borealis Foods’ peers higher possible upside, analysts clearly believe Borealis Foods has less favorable growth aspects than its peers.

Profitability

This table compares Borealis Foods and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	N/A	N/A	-12.25%
Borealis Foods Competitors	-28.46%	-31.99%	-7.16%

Institutional & Insider Ownership

34.7% of Borealis Foods shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Food & kindred products” companies are owned by institutional investors. 16.2% of Borealis Foods shares are owned by insiders. Comparatively, 18.0% of shares of all “Food & kindred products” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Borealis Foods and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Borealis Foods	N/A	-$2.94 million	-19.05
Borealis Foods Competitors	$7.54 billion	$686.90 million	7.01

Borealis Foods’ peers have higher revenue and earnings than Borealis Foods. Borealis Foods is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Borealis Foods has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500. Comparatively, Borealis Foods’ peers have a beta of 1.08, suggesting that their average stock price is 8% more volatile than the S&P 500.

Summary

Borealis Foods peers beat Borealis Foods on 8 of the 10 factors compared.

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.