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 compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Risk and Volatility
BRC has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.
Institutional and Insider Ownership
16.3% of BRC shares are owned by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are owned by institutional investors. 69.0% of BRC shares are owned by company insiders. Comparatively, 29.4% of Grove Collaborative shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BRC | $391.49 million | 0.41 | -$2.95 million | ($0.14) | -4.57 |
| Grove Collaborative | $203.43 million | 0.29 | -$27.42 million | ($0.62) | -2.29 |
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.
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 Recommendations
This is a summary of recent ratings and target prices for BRC and Grove Collaborative, as reported by MarketBeat.com.
| 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 target price of $2.33, indicating a potential upside of 264.58%. Grove Collaborative has a consensus target price of $1.60, indicating a potential upside of 12.68%. Given BRC’s stronger consensus rating and higher probable upside, equities analysts clearly believe BRC is more favorable than Grove Collaborative.
Summary
BRC beats Grove Collaborative on 10 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 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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