Krispy Kreme (NASDAQ:DNUT) versus BRC (NYSE:BRCC) Financial Contrast

BRC (NYSE:BRCC) and Krispy Kreme (NASDAQ:DNUT) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares BRC and Krispy Kreme’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%
Krispy Kreme	-33.27%	-5.13%	-1.67%

Volatility & Risk

BRC has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

16.3% of BRC shares are held by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are held by institutional investors. 73.8% of BRC shares are held by company insiders. Comparatively, 3.0% of Krispy Kreme shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares BRC and Krispy Kreme”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	0.52	-$2.95 million	($0.14)	-5.85
Krispy Kreme	$1.67 billion	0.33	$3.10 million	($2.99)	-1.06

Krispy Kreme has higher revenue and earnings than BRC. BRC is trading at a lower price-to-earnings ratio than Krispy Kreme, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BRC and Krispy Kreme, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	1	2	0	2.25
Krispy Kreme	3	5	3	0	2.00

BRC currently has a consensus price target of $2.33, suggesting a potential upside of 184.90%. Krispy Kreme has a consensus price target of $5.59, suggesting a potential upside of 76.76%. Given BRC’s stronger consensus rating and higher probable upside, research analysts plainly believe BRC is more favorable than Krispy Kreme.

Summary

Krispy Kreme beats BRC on 8 of the 14 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 Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.