Westrock Coffee (NASDAQ:WEST – Get Free Report) and Borealis Foods (NASDAQ:BRLS – Get Free Report) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Westrock Coffee and Borealis Foods, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Westrock Coffee | 1 | 1 | 3 | 0 | 2.40 |
| Borealis Foods | 1 | 0 | 0 | 0 | 1.00 |
Westrock Coffee presently has a consensus target price of $10.00, indicating a potential upside of 18.48%. Given Westrock Coffee’s stronger consensus rating and higher possible upside, equities analysts clearly believe Westrock Coffee is more favorable than Borealis Foods.
Insider and Institutional Ownership
45.1% of Westrock Coffee shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 25.4% of Westrock Coffee shares are owned by insiders. Comparatively, 16.2% of Borealis Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Westrock Coffee has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.
Profitability
This table compares Westrock Coffee and Borealis Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Westrock Coffee | -4.88% | -2,145.68% | -3.44% |
| Borealis Foods | -59.31% | N/A | -33.72% |
Valuation & Earnings
This table compares Westrock Coffee and Borealis Foods”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Westrock Coffee | $1.19 billion | 0.69 | -$90.44 million | ($0.66) | -12.79 |
| Borealis Foods | $30.08 million | 0.77 | -$18.98 million | ($0.85) | -1.26 |
Borealis Foods has lower revenue, but higher earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than Borealis Foods, indicating that it is currently the more affordable of the two stocks.
Summary
Westrock Coffee beats Borealis Foods on 10 of the 14 factors compared between the two stocks.
About Westrock Coffee
Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.
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.
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