Flowers Foods (NYSE:FLO) vs. Borealis Foods (NASDAQ:BRLS) Critical Review

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

Institutional and Insider Ownership

75.5% of Flowers Foods shares are owned by institutional investors. Comparatively, 34.7% of Borealis Foods shares are owned by institutional investors. 11.4% of Flowers Foods shares are owned by company insiders. Comparatively, 16.2% of Borealis Foods shares are owned 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Flowers Foods and Borealis Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flowers Foods	0	4	0	0	2.00
Borealis Foods	0	0	0	0	N/A

Flowers Foods currently has a consensus target price of $24.00, suggesting a potential upside of 2.43%. Given Flowers Foods’ higher probable upside, equities research analysts plainly believe Flowers Foods is more favorable than Borealis Foods.

Valuation and Earnings

This table compares Flowers 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
Flowers Foods	$5.09 billion	0.97	$123.42 million	$0.59	39.71
Borealis Foods	N/A	N/A	-$2.94 million	N/A	N/A

Flowers Foods has higher revenue and earnings than Borealis Foods.

Profitability

This table compares Flowers Foods and Borealis Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flowers Foods	2.45%	18.35%	7.41%
Borealis Foods	N/A	N/A	-15.15%

Risk and Volatility

Flowers Foods has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Borealis Foods has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.

Summary

Flowers Foods beats Borealis Foods on 8 of the 9 factors compared between the two stocks.

About Flowers Foods

Flowers Foods, Inc. produces and markets packaged bakery food products in the United States. Its principal products include fresh breads, buns, rolls, snack items, bagels, English muffins, and tortillas, as well as frozen breads and rolls under the Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley's, and Tastykake brand names. The company distributes its products through a direct-store-delivery distribution and a warehouse delivery system, as well as operates bakeries. Its customers include national and regional restaurants, institutions and foodservice distributors, and retail in-store bakeries; wholesale distributors; mass merchandisers, supermarkets, vending outlets, and convenience stores; quick-serve chains, food wholesalers, institutions, dollar stores, and vending companies; and public health care, military commissaries, and prisons, and other governmental institutions. The company was formerly known as Flowers Industries and changed its name to Flowers Foods, Inc. in 2001. Flowers Foods, Inc. was founded in 1919 and is headquartered in Thomasville, Georgia.

About Borealis Foods

Borealis Foods Inc. engages in the distribution of plant-based protein food products. Its products include Chef Woo, a high-protein instant ramen with 20 grams of plant-based complete protein; and Ramen Express, a vegetarian ramen noodles. The company is based in Oakville, Canada.