Financial Comparison: Krispy Kreme (NASDAQ:DNUT) versus BRC (NYSE:BRCC)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BRC and Krispy Kreme, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	2	2	0	2.20
Krispy Kreme	2	6	4	0	2.17

BRC currently has a consensus target price of $2.50, indicating a potential upside of 150.00%. Krispy Kreme has a consensus target price of $5.51, indicating a potential upside of 28.84%. Given BRC’s stronger consensus rating and higher possible upside, research analysts clearly believe BRC is more favorable than Krispy Kreme.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BRC	-2.86%	-11.48%	-2.60%
Krispy Kreme	-33.27%	-5.13%	-1.67%

Earnings and Valuation

This table compares BRC and Krispy Kreme”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$391.49 million	0.63	-$2.95 million	($0.14)	-7.14
Krispy Kreme	$1.67 billion	0.44	$3.10 million	($2.99)	-1.43

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

Risk & Volatility

BRC has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Institutional and Insider Ownership

16.3% of BRC shares are held by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are held by institutional investors. 69.0% of BRC shares are held by company insiders. Comparatively, 3.0% of Krispy Kreme shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Krispy Kreme beats BRC on 8 of the 14 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 Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.