Borealis Foods (NASDAQ:BRLS – Get Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Earnings and Valuation
This table compares Borealis Foods and Rocky Mountain Chocolate Factory”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Borealis Foods | $30.60 million | 0.68 | -$18.98 million | ($0.85) | -1.15 |
| Rocky Mountain Chocolate Factory | $27.07 million | 0.28 | -$4.56 million | ($0.66) | -1.20 |
Rocky Mountain Chocolate Factory has lower revenue, but higher earnings than Borealis Foods. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Borealis Foods, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Borealis Foods and Rocky Mountain Chocolate Factory, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Borealis Foods | 1 | 0 | 0 | 0 | 1.00 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
Institutional and Insider Ownership
34.7% of Borealis Foods shares are owned by institutional investors. Comparatively, 50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 16.2% of Borealis Foods shares are owned by company insiders. Comparatively, 25.2% of Rocky Mountain Chocolate Factory shares are owned by company 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 Borealis Foods and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Borealis Foods | -59.31% | N/A | -33.72% |
| Rocky Mountain Chocolate Factory | -22.25% | -130.90% | -30.50% |
Volatility & Risk
Borealis Foods has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
Summary
Rocky Mountain Chocolate Factory beats Borealis Foods on 7 of the 11 factors compared between the two stocks.
About Borealis Foods
Borealis Foods Inc. is a Canadian food company that develops, manufactures, and distributes convenient packaged foods with an emphasis on nutrition and plant-based ingredients. Its product portfolio includes instant noodles, ramen, soups, and other ready-to-eat meal products. The company’s brands include Chef Woo, which offers plant-based instant ramen products, as well as other convenience-food lines sold through retail and foodservice channels. Borealis Foods serves customers primarily in North America, including the United States and Canada.
About Rocky Mountain Chocolate Factory
Rocky Mountain Chocolate Factory, Inc. is a confectionery company that manufactures and sells a variety of premium chocolate and other confectionery products. Its offerings include chocolate-covered treats, caramels, creams, clusters, fudge, truffles, molded chocolates and other specialty candies, with products generally prepared using proprietary recipes and traditional confectionery techniques. Founded in 1981, the company began in Durango, Colorado, where it continues to maintain its corporate headquarters and manufacturing operations.
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