Mama’s Creations (NASDAQ:MAMA) versus Borealis Foods (NASDAQ:BRLS) Critical Survey

Mama’s Creations (NASDAQ:MAMA) and Borealis Foods (NASDAQ:BRLS) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mama’s Creations	$171.71 million	4.21	$5.29 million	$0.14	126.93
Borealis Foods	$30.08 million	0.93	-$18.98 million	($0.89)	-1.47

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

Risk & Volatility

Mama’s Creations has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Mama’s Creations and Borealis Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mama’s Creations	0	2	4	0	2.67
Borealis Foods	1	0	0	0	1.00

Mama’s Creations currently has a consensus target price of $18.80, indicating a potential upside of 5.80%. Given Mama’s Creations’ stronger consensus rating and higher possible upside, research analysts clearly believe Mama’s Creations is more favorable than Borealis Foods.

Institutional & Insider Ownership

45.2% of Mama’s Creations shares are held by institutional investors. Comparatively, 34.7% of Borealis Foods shares are held by institutional investors. 1.0% of Mama’s Creations 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, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Mama’s Creations and Borealis Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mama’s Creations	3.21%	14.69%	8.91%
Borealis Foods	-62.55%	N/A	-33.81%

Summary

Mama’s Creations beats Borealis Foods on 13 of the 14 factors compared between the two stocks.

About Mama’s Creations

Mama’s Creations, Inc. engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini’s, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ.

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.