BRC (NYSE:BRCC – Get Free Report) and Grove Collaborative (NYSE:GROV – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Volatility and Risk
BRC has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Earnings and Valuation
This table compares BRC and Grove Collaborative”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BRC | $391.49 million | 0.44 | -$2.95 million | ($0.14) | -4.91 |
| Grove Collaborative | $203.43 million | 0.31 | -$27.42 million | ($0.62) | -2.47 |
BRC has higher revenue and earnings than Grove Collaborative. BRC is trading at a lower price-to-earnings ratio than Grove Collaborative, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
16.3% of BRC shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 69.0% of BRC shares are held by company insiders. Comparatively, 29.4% of Grove Collaborative shares are held 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 BRC and Grove Collaborative’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BRC | -2.86% | -11.48% | -2.60% |
| Grove Collaborative | -12.59% | N/A | -30.45% |
Analyst Ratings
This is a breakdown of current ratings for BRC and Grove Collaborative, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BRC | 1 | 1 | 2 | 0 | 2.25 |
| Grove Collaborative | 1 | 1 | 1 | 0 | 2.00 |
BRC currently has a consensus price target of $2.33, suggesting a potential upside of 239.64%. Grove Collaborative has a consensus price target of $1.60, suggesting a potential upside of 4.58%. Given BRC’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BRC is more favorable than Grove Collaborative.
Summary
BRC beats Grove Collaborative on 10 of the 13 factors compared between the two stocks.
About BRC
BRC Inc., through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel in the United States. The company also produces media content, as well as sells coffee brewing equipment, and outdoor and lifestyle gear. It supports active military, veterans, and first responders. The company offers its products through grocery, specialty stores, and other intermediaries; and company operated and franchised Black Rifle Coffee retail coffee shop locations, as well as through e-commerce. BRC Inc. was founded in 2014 and is based in Salt Lake City, Utah.
About Grove Collaborative
Grove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It offers household, personal care, beauty, and other consumer products through retail channels, third parties, direct-to-consumer platform, and mobile applications, as well as online store. The company is headquartered in San Francisco, California.
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