Fenbo (NASDAQ:FEBO) versus BRC (NYSE:BRCC) Critical Analysis

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

Earnings and Valuation

This table compares Fenbo and BRC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fenbo	$17.11 million	0.48	-$1.99 million	N/A	N/A
BRC	$391.49 million	0.76	-$2.95 million	($0.14)	-8.54

Fenbo has higher earnings, but lower revenue than BRC.

Analyst Ratings

This is a breakdown of current ratings and price targets for Fenbo and BRC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fenbo	1	0	0	0	1.00
BRC	1	2	2	0	2.20

BRC has a consensus price target of $2.50, suggesting a potential upside of 109.21%. Given BRC’s stronger consensus rating and higher possible upside, analysts plainly believe BRC is more favorable than Fenbo.

Insider and Institutional Ownership

0.0% of Fenbo shares are held by institutional investors. Comparatively, 16.3% of BRC shares are held by institutional investors. 69.0% of BRC shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fenbo	N/A	N/A	N/A
BRC	-2.86%	-11.48%	-2.60%

Volatility and Risk

Fenbo has a beta of -1.35, indicating that its share price is 235% less volatile than the S&P 500. Comparatively, BRC has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Summary

BRC beats Fenbo on 8 of the 12 factors compared between the two stocks.

About Fenbo

Fenbo Holdings Limited, through its subsidiaries, manufactures and sells personal care electric appliances and toys products. The company offers curling wands and irons, flat irons and hair straighteners, hair dryers, trimmers, nail polishers, pet shampoo brushes, eyebrow pliers, etc. It serves customers in Europe, North America, South America, Asia, and internationally. The company was founded in 1993 and is headquartered in Kwun Tong, Hong Kong. Fenbo Holdings Limited operates as a subsidiary of Luxury Max Investments Limited.

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.