Mama’s Creations (NASDAQ:MAMA) and Oatly Group (NASDAQ:OTLY) Critical Comparison

Oatly Group (NASDAQ:OTLY) and Mama’s Creations (NASDAQ:MAMA) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oatly Group	-9.51%	-2,479.86%	-11.98%
Mama’s Creations	3.53%	10.05%	7.12%

Analyst Ratings

This is a breakdown of recent recommendations for Oatly Group and Mama’s Creations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oatly Group	1	1	4	0	2.50
Mama’s Creations	0	2	6	1	2.89

Oatly Group currently has a consensus target price of $14.31, suggesting a potential upside of 86.81%. Mama’s Creations has a consensus target price of $19.86, suggesting a potential upside of 52.75%. Given Oatly Group’s higher possible upside, equities analysts plainly believe Oatly Group is more favorable than Mama’s Creations.

Insider and Institutional Ownership

68.2% of Oatly Group shares are held by institutional investors. Comparatively, 45.2% of Mama’s Creations shares are held by institutional investors. 1.7% of Oatly Group shares are held by company insiders. Comparatively, 1.0% of Mama’s Creations shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Oatly Group and Mama’s Creations”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oatly Group	$862.46 million	0.28	-$152.77 million	($2.84)	-2.70
Mama’s Creations	$171.71 million	3.57	$5.29 million	$0.17	76.47

Mama’s Creations has lower revenue, but higher earnings than Oatly Group. Oatly Group 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

Oatly Group has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, Mama’s Creations has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Summary

Mama’s Creations beats Oatly Group on 9 of the 14 factors compared between the two stocks.

About Oatly Group

Oatly Group AB is a Swedish food and beverage company focused on oat-based alternatives to dairy products. Founded in the 1990s and headquartered in Malmö, Sweden, the company traces its origins to research into using oats to create alternatives for people who cannot or choose not to consume dairy. Oatly’s products include oat drinks, cooking creams, yogurt-style products and frozen desserts. The company sells its products under the Oatly brand through grocery retailers, food-service businesses and other channels.

About Mama’s Creations

Mama’s Creations, Inc. makes and markets refrigerated, ready-to-eat prepared foods for grocery retailers and other food sellers. Its products include meatballs, entrées, side dishes, salads, dips and spreads, sold under its own and other brands. The company’s offerings are designed for deli departments and prepared-food sections, as well as foodservice and other retail channels. Mama’s Creations is based in East Rutherford, New Jersey, and serves customers across the United States. The company was previously known as MamaMancini’s Holdings, Inc. before adopting the Mama’s Creations name in 2023, reflecting its broader prepared-food business.