Head-To-Head Comparison: Purple Innovation (NASDAQ:PRPL) & BRC (NYSE:BRCC)

BRC (NYSE:BRCC) and Purple Innovation (NASDAQ:PRPL) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

16.3% of BRC shares are held by institutional investors. Comparatively, 88.4% of Purple Innovation shares are held by institutional investors. 69.0% of BRC shares are held by insiders. Comparatively, 53.9% of Purple Innovation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares BRC and Purple Innovation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$391.40 million	0.54	-$2.95 million	($0.14)	-6.07
Purple Innovation	$487.88 million	0.15	-$97.90 million	($0.53)	-1.27

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

Risk and Volatility

BRC has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Profitability

This table compares BRC and Purple Innovation’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%
Purple Innovation	-12.40%	-472.12%	-13.35%

Analyst Recommendations

This is a summary of recent ratings and price targets for BRC and Purple Innovation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	1	2	0	2.25
Purple Innovation	1	1	0	0	1.50

BRC currently has a consensus target price of $2.33, suggesting a potential upside of 174.54%. Purple Innovation has a consensus target price of $1.00, suggesting a potential upside of 48.81%. Given BRC’s stronger consensus rating and higher probable upside, equities analysts clearly believe BRC is more favorable than Purple Innovation.

Summary

BRC beats Purple Innovation 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 Purple Innovation

Purple Innovation, Inc. designs and manufactures sleep and other products in the United States and internationally. The company offers mattresses, pillows, cushions, bases, sheets, platforms, adjustable bases, mattress protectors, foundations, blankets, duvets, duvet covers, seat cushions, and pet beds under the Purple brand. It markets and sells its products through its e-commerce online channels, retail brick-and-mortar wholesale partners, third-party online retailers, and Purple showrooms, as well as through its website, Purple.com. The company was founded in 2010 and is headquartered in Lehi, Utah.