BRC (NYSE:BRCC) & Tokyo Lifestyle (NASDAQ:TKLF) Critical Analysis

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

Volatility and Risk

BRC has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Tokyo Lifestyle has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Profitability

This table compares BRC and Tokyo Lifestyle’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%
Tokyo Lifestyle	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BRC and Tokyo Lifestyle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	2	2	0	2.20
Tokyo Lifestyle	0	1	0	0	2.00

BRC presently has a consensus target price of $2.50, suggesting a potential upside of 97.63%. Given BRC’s stronger consensus rating and higher probable upside, equities analysts plainly believe BRC is more favorable than Tokyo Lifestyle.

Insider & Institutional Ownership

16.3% of BRC shares are owned by institutional investors. 69.0% of BRC shares are owned by company insiders. Comparatively, 75.4% of Tokyo Lifestyle shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares BRC and Tokyo Lifestyle”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$391.49 million	0.80	-$2.95 million	($0.15)	-8.43
Tokyo Lifestyle	$210.12 million	0.06	$6.64 million	N/A	N/A

Tokyo Lifestyle has lower revenue, but higher earnings than BRC.

Summary

BRC beats Tokyo Lifestyle on 7 of the 12 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 Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.