BRC (NYSE:BRCC) versus Grove Collaborative (NYSE:GROV) Head to Head Review

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$391.49 million	0.40	-$2.95 million	($0.14)	-4.49
Grove Collaborative	$203.43 million	0.29	-$27.42 million	($0.62)	-2.30

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

Profitability

This table compares BRC and Grove Collaborative’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%
Grove Collaborative	-12.59%	N/A	-30.45%

Risk and Volatility

BRC has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

16.3% of BRC shares are owned by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are owned by institutional investors. 73.8% of BRC shares are owned by company insiders. Comparatively, 29.4% of Grove Collaborative shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BRC and Grove Collaborative, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	1	2	0	2.25
Grove Collaborative	1	1	1	0	2.00

BRC presently has a consensus target price of $2.33, suggesting a potential upside of 271.55%. Grove Collaborative has a consensus target price of $1.60, suggesting a potential upside of 12.28%. Given BRC’s stronger consensus rating and higher probable upside, equities research analysts clearly believe BRC is more favorable than Grove Collaborative.

Summary

BRC beats Grove Collaborative on 10 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 Grove Collaborative

Grove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It offers household, personal care, beauty, and other consumer products through retail channels, third parties, direct-to-consumer platform, and mobile applications, as well as online store. The company is headquartered in San Francisco, California.