Financial Survey: Big Rock Brewery (OTCMKTS:BRBMF) & MGP Ingredients (NASDAQ:MGPI)

Big Rock Brewery (OTCMKTS:BRBMF) and MGP Ingredients (NASDAQ:MGPI) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Big Rock Brewery and MGP Ingredients, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Rock Brewery	0	0	0	0	0.00
MGP Ingredients	0	1	4	0	2.80

MGP Ingredients has a consensus price target of $50.33, indicating a potential upside of 71.73%. Given MGP Ingredients’ stronger consensus rating and higher possible upside, analysts clearly believe MGP Ingredients is more favorable than Big Rock Brewery.

Institutional and Insider Ownership

77.1% of MGP Ingredients shares are owned by institutional investors. 38.4% of Big Rock Brewery shares are owned by insiders. Comparatively, 34.4% of MGP Ingredients shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Big Rock Brewery and MGP Ingredients’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Rock Brewery	-20.63%	-52.12%	-23.36%
MGP Ingredients	-1.08%	10.66%	6.49%

Risk and Volatility

Big Rock Brewery has a beta of -0.69, meaning that its share price is 169% less volatile than the S&P 500. Comparatively, MGP Ingredients has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Valuation & Earnings

This table compares Big Rock Brewery and MGP Ingredients”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Rock Brewery	$31.65 million	0.59	-$9.83 million	($1.10)	-0.69
MGP Ingredients	$703.62 million	0.89	$34.66 million	($0.31)	-94.55

MGP Ingredients has higher revenue and earnings than Big Rock Brewery. MGP Ingredients is trading at a lower price-to-earnings ratio than Big Rock Brewery, indicating that it is currently the more affordable of the two stocks.

Summary

MGP Ingredients beats Big Rock Brewery on 12 of the 14 factors compared between the two stocks.

About Big Rock Brewery

Big Rock Brewery Inc. produces, markets, and distributes craft beers, ciders, and ready-to-drink beverages primarily in Canada. The company offers a selection of beer, ciders, and ready-to-drink beverages under the Big Rock, Tree Brewing, Rock Creek Cider, Dukes Cider, AGD, Shaftbury, Bow Valley, White Peaks, and Cottage Springs brands. It also provides apparel and accessories, including jackets, headwear, sweaters, glassware, belt buckles, and coolers. The company sells its products to provincial liquor boards, grocery stores, on-premise and contract manufacturing customers; and through premises owned and/or operated by the Corporation, Big Rock's retail location and online through various e-commerce platforms. website, and third-party delivery services. Big Rock Brewery Inc. was founded in 1985 and is headquartered in Calgary, Canada.

About MGP Ingredients

MGP Ingredients, Inc., together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions. The Distillery Solutions segment provides food grade alcohol for beverage applications that include bourbon, rye, whiskeys, as well as grain neutral spirits, include vodka and gin; and food-grade industrial alcohol, which is used as an ingredient in food products, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also offers distillery co-products, such as dried distillers’ grain, fuel-grade alcohol for blending with gasoline, and corn oil; and provides warehouse services, including barrel put away, barrel storage, and barrel retrieval services, as well as blending services. The Branded Spirits segment provides premium plus, ultra-premium, super premium, premium, mid, and value branded distilled spirits, as well as private label products. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym, Resistant Starch series, and FiberRite RW Resistant Starch names; specialty wheat proteins for food applications under the Arise and Proterra names; gluten-free textured pea proteins; commodity wheat starch for food and non-food applications; and commodity wheat proteins. It sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries. The company was founded in 1941 and is based in Atchison, Kansas.