Analyzing Innovation Beverage Group (NASDAQ:IBG) and BRC (NYSE:BRCC)

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

Profitability

This table compares BRC and Innovation Beverage Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRC	-1.22%	23.35%	5.11%
Innovation Beverage Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for BRC and Innovation Beverage Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	0	3	3	0	2.50
Innovation Beverage Group	0	0	1	0	3.00

BRC presently has a consensus target price of $4.60, indicating a potential upside of 109.57%. Given BRC’s higher probable upside, research analysts plainly believe BRC is more favorable than Innovation Beverage Group.

Institutional and Insider Ownership

16.3% of BRC shares are owned by institutional investors. 73.8% of BRC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BRC and Innovation Beverage Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$391.49 million	1.19	-$16.75 million	($0.04)	-54.88
Innovation Beverage Group	$3.15 million	1.85	N/A	N/A	N/A

Innovation Beverage Group has lower revenue, but higher earnings than BRC.

Summary

BRC beats Innovation Beverage Group on 7 of the 10 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 Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.