Head to Head Analysis: Borealis Foods (NASDAQ:BRLS) and Simply Good Foods (NASDAQ:SMPL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	N/A	N/A	-1.68%
Simply Good Foods	11.12%	10.12%	7.62%

Earnings and Valuation

This table compares Borealis Foods and Simply Good Foods’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	$29.27 million	0.98	-$300,000.00	($0.21)	-20.81
Simply Good Foods	$1.24 billion	2.57	$133.57 million	$1.39	22.95

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

Risk & Volatility

Borealis Foods has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, Simply Good Foods has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Institutional & Insider Ownership

34.7% of Borealis Foods shares are held by institutional investors. Comparatively, 88.5% of Simply Good Foods shares are held by institutional investors. 16.2% of Borealis Foods shares are held by insiders. Comparatively, 11.0% of Simply Good Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Borealis Foods and Simply Good Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	0	0	0	0	N/A
Simply Good Foods	0	2	4	0	2.67

Simply Good Foods has a consensus price target of $41.17, suggesting a potential upside of 29.05%. Given Simply Good Foods’ higher possible upside, analysts plainly believe Simply Good Foods is more favorable than Borealis Foods.

Summary

Simply Good Foods beats Borealis Foods on 12 of the 13 factors compared between the two stocks.

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.

About Simply Good Foods

The Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, protein chips, and recipes under the Atkins and Quest brand names. The company also provides confectionery products, such as full-size and mini peanut butter cups, and fudgey brownie and gooey caramel candy bites, chocolatey coated peanut candies, and coconutty caramel candy bars under Atkins Endulge brand name.It distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. The company also sells its products through e-commerce channels, including questnutrition.com, atkins.com, amazon.com and others. The Simply Good Foods Company was founded in 2017 and is headquartered in Denver, Colorado.