Head-To-Head Survey: BRC (NYSE:BRCC) & Coffee (NASDAQ:JVA)

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

Analyst Ratings

This is a breakdown of recent recommendations for BRC and Coffee, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	0	3	0	2.50
Coffee	0	2	0	0	2.00

BRC presently has a consensus target price of $22.50, suggesting a potential upside of 145.15%. Coffee has a consensus target price of $9.50, suggesting a potential upside of 139.90%. Given BRC’s stronger consensus rating and higher probable upside, equities research analysts plainly believe BRC is more favorable than Coffee.

Institutional and Insider Ownership

16.3% of BRC shares are owned by institutional investors. 54.9% of BRC shares are owned by insiders. Comparatively, 21.9% of Coffee shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

BRC has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Coffee has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Valuation and Earnings

This table compares BRC and Coffee”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	0.58	-$11.91 million	($0.30)	-30.59
Coffee	$96.28 million	0.23	$1.40 million	$0.84	4.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BRC	-0.89%	-5.33%	-1.79%
Coffee	4.85%	16.20%	11.61%

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 Coffee

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States, Australia, Canada, England, and China. It offers wholesale green coffee products, including unroasted raw beans that are sold to large, medium, and small roasters, as well as coffee shop operators; and roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes. The company also roasts and blends company label branded coffee to supermarkets, wholesalers, and individually owned stores; and sells tabletop coffee roasting equipment, instant coffees, and tea products for its customers. Its coffee brands include Cafe Caribe, Don Manuel, S&W, Cafe Supremo, Via Roma, Premier Roasters, and Harmony Bay. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in April 1998. Coffee Holding Co., Inc. was founded in 1971 and is headquartered in Staten Island, New York.