Critical Analysis: Starco Brands (STCB) versus The Competition

Starco Brands (OTCMKTS:STCB) is one of 92 public companies in the “Advertising agencies” industry, but how does it weigh in compared to its peers? We will compare Starco Brands to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, earnings, risk, dividends and profitability.

Volatility & Risk

Starco Brands has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Starco Brands’ peers have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Insider and Institutional Ownership

49.8% of shares of all “Advertising agencies” companies are held by institutional investors. 34.8% of Starco Brands shares are held by insiders. Comparatively, 20.2% of shares of all “Advertising agencies” companies are held 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.

Analyst Ratings

This is a summary of recent recommendations for Starco Brands and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starco Brands	0	0	0	0	N/A
Starco Brands Competitors	357	1745	2860	42	2.52

As a group, “Advertising agencies” companies have a potential upside of 43.50%. Given Starco Brands’ peers higher possible upside, analysts clearly believe Starco Brands has less favorable growth aspects than its peers.

Profitability

This table compares Starco Brands and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Starco Brands	-20.73%	-17.69%	-9.45%
Starco Brands Competitors	-19.54%	-50.46%	-4.72%

Valuation & Earnings

This table compares Starco Brands and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Starco Brands	$7.81 million	$810,000.00	-14.78
Starco Brands Competitors	$1.51 billion	$61.19 million	1,903.96

Starco Brands’ peers have higher revenue and earnings than Starco Brands. Starco Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Starco Brands peers beat Starco Brands on 8 of the 10 factors compared.

Starco Brands Company Profile

Starco Brands, Inc. markets consumer products through retail and online in the United States. It offers products in various categories, including household cleaning, DIY/Hardware, paints, coatings and adhesives, household, hair care, disinfectants, automotive, motorcycle, arts and crafts, personal care cosmetics, personal care FDA, sun care, food, cooking oils, beverages and spirits, and wine under the Winona, Whipshots, and Breathe brand names. The company was formerly known as Insynergy Products, Inc. and changed its name to Starco Brands, Inc. in September 2017. Starco Brands, Inc. was incorporated in 2010 and is based in Santa Monica, California.