B&G Foods (NYSE:BGS) and Borealis Foods (NASDAQ:BRLS) Financial Analysis

B&G Foods (NYSE:BGS) and Borealis Foods (NASDAQ:BRLS) are both small-cap consumer defensive companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

66.2% of B&G Foods shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 3.2% of B&G Foods shares are owned by insiders. Comparatively, 65.7% of Borealis Foods shares are owned by 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.

Profitability

This table compares B&G Foods and Borealis Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B&G Foods	-3.21%	8.68%	1.98%
Borealis Foods	N/A	N/A	-12.25%

Volatility & Risk

B&G Foods has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of -0.15, suggesting that its share price is 115% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for B&G Foods and Borealis Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B&G Foods	2	1	0	0	1.33
Borealis Foods	0	0	0	0	N/A

B&G Foods currently has a consensus price target of $9.50, suggesting a potential downside of 15.63%. Given B&G Foods’ higher probable upside, analysts plainly believe B&G Foods is more favorable than Borealis Foods.

Valuation & Earnings

This table compares B&G Foods and Borealis Foods’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B&G Foods	$2.06 billion	0.43	-$66.20 million	($0.88)	-12.80
Borealis Foods	N/A	N/A	-$2.94 million	($0.21)	-19.05

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

Summary

B&G Foods beats Borealis Foods on 7 of the 11 factors compared between the two stocks.

About B&G Foods

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. The company's products include frozen and canned vegetables, vegetables, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, crackers, baking powder and soda, corn starch, nut clusters, and other specialty products. It markets its products under various brands, including Ac'cent, B&G, B&M, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Grandma's Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, McCann's, Molly McButter, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, Spice Islands, Spring Tree, Sugar Twin, Tone's, Trappey's, TrueNorth, Underwood, Vermont Maid, Victoria, Weber, and Wright's. The company also sells, markets, and distributes household products under the Static Guard brand. It sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, foodservice outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1822 and is headquartered in Parsippany, New Jersey.

About Borealis Foods

Borealis Foods Inc. engages in the distribution of plant-based protein food products. The company's product includes Chef Woo, a high-protein meat alternative; and Ramen Express, vegetarian ramen noodles. Borealis Foods Inc. was incorporated in 2020 and is based in Oakville, Canada.