Critical Comparison: Danone (OTCMKTS:DANOY) vs. Borealis Foods (NASDAQ:BRLS)

Borealis Foods (NASDAQ:BRLS) and Danone (OTCMKTS:DANOY) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

34.7% of Borealis Foods shares are owned by institutional investors. Comparatively, 0.1% of Danone shares are owned by institutional investors. 16.2% of Borealis Foods shares are owned by insiders. Comparatively, 1.0% of Danone shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Borealis Foods and Danone”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	-$1.58 million	-83.43	-$2.94 million	N/A	N/A
Danone	$29.89 billion	1.65	$953.42 million	N/A	N/A

Danone has higher revenue and earnings than Borealis Foods.

Analyst Ratings

This is a summary of current recommendations for Borealis Foods and Danone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	0	0	0	0	N/A
Danone	0	1	2	0	2.67

Volatility & Risk

Borealis Foods has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Danone has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares Borealis Foods and Danone’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%
Danone	N/A	N/A	N/A

Summary

Danone beats Borealis Foods on 6 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 Danone

Danone S.A. operates in the food and beverage industry in Europe, Ukraine, North America, China, North Asia, the Oceania, Latin America, rest of Asia, Africa, Turkey, the Middle East, and the Commonwealth of Independent States. The company operates through Essential Dairy & Plant-Based, Specialized Nutrition, and Waters segments. It produces and distributes yogurts, dairy products, coffee creamers and drinks, beverages, plant-based products, ice creams, frozen desserts, and cheese products under the Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, Danone, Light & Fit, Oikos, YoPRO, International Delight, SToK, Silk, Follow Your Heart, and So Delicious. The company also provides specialized nutrition, including formulas and complementary feeding for babies and young children; and special medical purposes food for children and adults under the Aptamil, Nutrilon, Gallia, Cow & Gate, Bebelac, and Blédina brands. In addition, it offers tube feeding products under the Nutrison name; and oral nutritional supplements under the Fortimel and NutriDrink names. Further, the company provides mineral waters from natural sources, waters infused with natural fruit extracts, fruit juices, and vitamins under the evian, Volvic, AQUA, Mizone, Bonafont, Salus, Hayat, Sirma, Font Vella, Lanjarón, and Zywiec Zdroj brands. It distributes its products through retail chains and traditional market outlets; convenience stores; hotels, restaurants, and coffee outlets; hospitals, clinics, and pharmacies; and e-commerce channels. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.