Armanino Foods of Distinction (OTCMKTS:AMNF) vs. Borealis Foods (NASDAQ:BRLS) Critical Analysis

Borealis Foods (NASDAQ:BRLS) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

34.7% of Borealis Foods shares are held by institutional investors. Comparatively, 0.1% of Armanino Foods of Distinction shares are held by institutional investors. 16.2% of Borealis Foods shares are held by insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Borealis Foods and Armanino Foods of Distinction, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Borealis Foods	1	0	0	0	1.00
Armanino Foods of Distinction	0	1	1	1	3.00

Armanino Foods of Distinction has a consensus target price of $15.00, indicating a potential upside of 46.48%. Given Armanino Foods of Distinction’s stronger consensus rating and higher probable upside, analysts clearly believe Armanino Foods of Distinction is more favorable than Borealis Foods.

Profitability

This table compares Borealis Foods and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Borealis Foods	-62.55%	N/A	-33.81%
Armanino Foods of Distinction	25.06%	47.01%	35.12%

Earnings & Valuation

This table compares Borealis Foods and Armanino Foods of Distinction”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Borealis Foods	$30.60 million	0.91	-$18.98 million	($0.85)	-1.53
Armanino Foods of Distinction	$76.10 million	4.12	$18.80 million	$0.62	16.52

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

Risk and Volatility

Borealis Foods has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Summary

Armanino Foods of Distinction beats Borealis Foods on 13 of the 15 factors compared between the two stocks.

About Borealis Foods

Borealis Foods Inc. operates as a food technology company that develops plant-based ready-to-eat meals. The company also developed ambient ready-to-eat high-protein meals for U.S. and global humanitarian food programs. Its products include Chef Woo, a plant based instant ramen meals that provides with 20 grams of plant-based complete protein; and Ramen Express, a vegetarian ramen noodles. The company distributes its products via retail partners across the U.S., Canada, Mexico and Europe and also sells its products online. The company is based in Oakville, Canada.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.