Reviewing Borealis Foods (NASDAQ:BRLS) & Oatly Group (NASDAQ:OTLY)

Borealis Foods (NASDAQ:BRLS) and Oatly Group (NASDAQ:OTLY) 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, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Borealis Foods and Oatly Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	0	0	0	0	N/A
Oatly Group	1	3	5	0	2.44

Oatly Group has a consensus price target of $2.11, suggesting a potential upside of 122.67%. Given Oatly Group’s higher possible upside, analysts clearly believe Oatly Group is more favorable than Borealis Foods.

Institutional & Insider Ownership

34.7% of Borealis Foods shares are owned by institutional investors. Comparatively, 68.2% of Oatly Group shares are owned by institutional investors. 16.2% of Borealis Foods shares are owned by company insiders. Comparatively, 1.7% of Oatly Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Borealis Foods has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, Oatly Group has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500.

Valuation & Earnings

This table compares Borealis Foods and Oatly Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	N/A	N/A	-$300,000.00	($0.21)	-19.05
Oatly Group	$783.35 million	0.72	-$416.87 million	($0.85)	-1.12

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	N/A	N/A	-1.68%
Oatly Group	-53.22%	-37.94%	-16.81%

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.

About Oatly Group

Oatly Group AB, an oatmilk company, provides a range of plant-based dairy products made from oats in Europe, the Middle East, Africa, the Americas, and Asia. It offers Barista edition oatmilk, oatgurts, frozen desserts, ice-creams, and yogurts; cooking products, including cooking cream, in regular and organic, Crème Fraiche, whipping cream, vanilla custard, and spreads in a variety of flavors; and ready-to-go drinks. The company was formerly known as Havre Global AB and changed its name to Oatly Group AB in March 2021. Oatly Group AB was founded in 1994 and is headquartered in Malmö, Sweden.