Critical Review: Borealis Foods (NASDAQ:BRLS) & Real Good Food (NASDAQ:RGF)

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

Institutional and Insider Ownership

55.6% of Real Good Food shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 24.6% of Real Good Food shares are owned by company insiders. Comparatively, 16.2% of Borealis Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Real Good Food and Borealis Foods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Good Food	$141.59 million	0.09	-$10.98 million	($2.07)	-0.18
Borealis Foods	N/A	N/A	-$2.94 million	N/A	N/A

Borealis Foods has lower revenue, but higher earnings than Real Good Food.

Risk and Volatility

Real Good Food has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Real Good Food and Borealis Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Good Food	0	1	0	0	2.00
Borealis Foods	0	0	0	0	N/A

Real Good Food currently has a consensus target price of $6.00, indicating a potential upside of 1,539.34%. Given Real Good Food’s higher probable upside, equities analysts clearly believe Real Good Food is more favorable than Borealis Foods.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Real Good Food	N/A	N/A	N/A
Borealis Foods	N/A	-108.01%	-7.73%

Summary

Real Good Food beats Borealis Foods on 6 of the 8 factors compared between the two stocks.

About Real Good Food

The Real Good Food Company, Inc., through its subsidiary, operates as a health and wellness focused frozen food company in the United States. The company develops, manufactures, and markets foods designed to be high in protein, low in sugar, and made from gluten- and grain-free ingredients. It offers comfort foods, such as bacon wrapped stuffed chicken, chicken enchiladas, grain-free cheesy bread breakfast sandwiches, and various entrée bowls under the Realgood Foods Co. brand name, as well as sells private-label products. The company serves retailers, which primarily sell its products through natural and conventional grocery, drug, club, and mass merchandise stores. It also sells its products through its e-commerce channel, which includes direct-to-consumer sales through its website, as well as through its retail customers' online platforms. The company was formerly known as Project Clean, Inc. and changed its name to The Real Good Food Company, Inc. in October 2021. The Real Good Food Company, Inc. was founded in 2016 and is based in Cherry Hill, New Jersey.

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.