BRC (NYSE:BRCC) versus Purple Innovation (NASDAQ:PRPL) Critical Survey

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

Volatility & Risk

Purple Innovation has a beta of 1.86, indicating that its share price is 86% more 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.

Insider and Institutional Ownership

88.4% of Purple Innovation shares are held by institutional investors. Comparatively, 16.3% of BRC shares are held by institutional investors. 53.9% of Purple Innovation shares are held by company insiders. Comparatively, 69.0% of BRC shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Purple Innovation	-12.40%	-472.12%	-13.35%
BRC	-2.86%	-11.48%	-2.60%

Valuation and Earnings

This table compares Purple Innovation and BRC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purple Innovation	$487.88 million	0.15	-$97.90 million	($0.53)	-1.26
BRC	$391.49 million	0.47	-$2.95 million	($0.14)	-5.29

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Purple Innovation and BRC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	1	0	0	1.50
BRC	1	1	2	0	2.25

Purple Innovation presently has a consensus target price of $1.00, indicating a potential upside of 49.25%. BRC has a consensus target price of $2.33, indicating a potential upside of 214.89%. Given BRC’s stronger consensus rating and higher possible upside, analysts plainly believe BRC is more favorable than Purple Innovation.

Summary

BRC beats Purple Innovation on 10 of the 14 factors compared between the two stocks.

About Purple Innovation

Purple Innovation, Inc. designs and manufactures sleep and other products in the United States and internationally. The company offers mattresses, pillows, cushions, bases, sheets, platforms, adjustable bases, mattress protectors, foundations, blankets, duvets, duvet covers, seat cushions, and pet beds under the Purple brand. It markets and sells its products through its e-commerce online channels, retail brick-and-mortar wholesale partners, third-party online retailers, and Purple showrooms, as well as through its website, Purple.com. The company was founded in 2010 and is headquartered in Lehi, Utah.

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.