Critical Review: Swatch Group (OTCMKTS:SWGAY) vs. BRC (NYSE:BRCC)

Swatch Group (OTCMKTS:SWGAY) and BRC (NYSE:BRCC) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and target prices for Swatch Group and BRC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swatch Group	0	1	0	0	2.00
BRC	1	1	2	0	2.25

BRC has a consensus target price of $2.33, suggesting a potential upside of 234.29%. Given BRC’s stronger consensus rating and higher probable upside, analysts clearly believe BRC is more favorable than Swatch Group.

Risk and Volatility

Swatch Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, BRC has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares Swatch Group and BRC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swatch Group	$7.58 billion	3.96	$3.62 million	N/A	N/A
BRC	$391.49 million	0.44	-$2.95 million	($0.14)	-4.99

Swatch Group has higher revenue and earnings than BRC.

Profitability

This table compares Swatch Group and BRC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swatch Group	N/A	N/A	N/A
BRC	-2.86%	-11.48%	-2.60%

Institutional & Insider Ownership

16.3% of BRC shares are owned by institutional investors. 69.0% of BRC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

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.