Contrasting BRC (NYSE:BRCC) and Newell Brands (NASDAQ:NWL)

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

Earnings and Valuation

This table compares BRC and Newell Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$398.26 million	1.00	-$11.91 million	($0.10)	-16.04
Newell Brands	$7.20 billion	0.23	-$285.00 million	($0.67)	-5.73

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BRC and Newell Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	0	2	0	2.33
Newell Brands	1	6	3	0	2.20

BRC presently has a consensus price target of $2.50, suggesting a potential upside of 55.86%. Newell Brands has a consensus price target of $5.06, suggesting a potential upside of 31.66%. Given BRC’s stronger consensus rating and higher probable upside, equities research analysts plainly believe BRC is more favorable than Newell Brands.

Volatility and Risk

BRC has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Institutional and Insider Ownership

16.3% of BRC shares are owned by institutional investors. Comparatively, 92.5% of Newell Brands shares are owned by institutional investors. 54.9% of BRC shares are owned by insiders. Comparatively, 1.6% of Newell Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares BRC and Newell Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRC	-2.17%	-14.55%	-4.14%
Newell Brands	-3.91%	8.89%	2.03%

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 Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.