Financial Survey: J. M. Smucker (NYSE:SJM) and Borealis Foods (NASDAQ:BRLS)

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

Risk and Volatility

J. M. Smucker has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Institutional and Insider Ownership

81.7% of J. M. Smucker shares are held by institutional investors. Comparatively, 34.7% of Borealis Foods shares are held by institutional investors. 2.2% of J. M. Smucker 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares J. M. Smucker and Borealis Foods”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J. M. Smucker	$8.73 billion	1.17	-$1.23 billion	($11.79)	-8.15
Borealis Foods	$27.67 million	0.71	-$25.33 million	($0.86)	-1.06

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for J. M. Smucker and Borealis Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J. M. Smucker	1	9	10	0	2.45
Borealis Foods	1	0	0	0	1.00

J. M. Smucker currently has a consensus target price of $117.25, indicating a potential upside of 21.98%. Given J. M. Smucker’s stronger consensus rating and higher possible upside, equities research analysts clearly believe J. M. Smucker is more favorable than Borealis Foods.

Profitability

This table compares J. M. Smucker and Borealis Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J. M. Smucker	-14.07%	15.94%	5.37%
Borealis Foods	-65.11%	N/A	-31.61%

Summary

J. M. Smucker beats Borealis Foods on 10 of the 14 factors compared between the two stocks.

About J. M. Smucker

The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. It operates in three segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The company offers mainstream roast, ground, single serve, and premium coffee; peanut butter and specialty spreads; fruit spreads, toppings, and syrups; jelly products; nut mix products; shortening and oils; frozen sandwiches and snacks; pet food and pet snacks; and foodservice hot beverage, foodservice portion control, and flour products, as well as dog and cat food, frozen handheld products, juices and beverages, and baking mixes and ingredients. It provides its products under the Meow Mix, Milk-Bone, Pup-Peroni, Canine Carry Outs, Folgers, Café Bustelo, Dunkin', Folgers, Café Bustelo, 1850, Jif, Smucker's, Smucker's Uncrustables, Robin Hood, and Five Roses. The company sells its products through direct sales and brokers to food retailers, club stores, discount and dollar stores, online retailers, pet specialty stores, natural foods stores and distributors, drug stores, military commissaries, and mass merchandisers. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.

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.