Head-To-Head Analysis: Real Good Food (NASDAQ:RGF) vs. Borealis Foods (NASDAQ:BRLS)

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

Analyst Recommendations

This is a summary of current recommendations for Real Good Food and Borealis Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Good Food	0	1	1	0	2.50
Borealis Foods	0	0	0	0	N/A

Real Good Food presently has a consensus price target of $5.00, indicating a potential upside of 1,237.26%. Given Real Good Food’s higher probable upside, 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%

Insider & Institutional Ownership

55.5% of Real Good Food shares are held by institutional investors. Comparatively, 34.7% of Borealis Foods shares are held by institutional investors. 24.6% of Real Good Food shares are held by company insiders. Comparatively, 16.2% of Borealis Foods shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Good Food	$156.38 million	0.08	-$10.98 million	($2.07)	-0.18
Borealis Foods	-$1.58 million	-81.13	-$2.94 million	N/A	N/A

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

Volatility & Risk

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

Summary

Real Good Food beats Borealis Foods on 8 of the 10 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. 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.