Reviewing BRC (NYSE:BRCC) and Grove Collaborative (NYSE:GROV)

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

Insider & Institutional Ownership

91.6% of Grove Collaborative shares are owned by institutional investors. Comparatively, 16.3% of BRC shares are owned by institutional investors. 29.4% of Grove Collaborative shares are owned by company insiders. Comparatively, 69.0% of BRC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Grove Collaborative and BRC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$203.43 million	0.31	-$27.42 million	($0.62)	-2.47
BRC	$391.49 million	0.44	-$2.95 million	($0.14)	-4.91

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.

Risk & Volatility

Grove Collaborative has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, BRC has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grove Collaborative	-12.59%	N/A	-30.45%
BRC	-2.86%	-11.48%	-2.60%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Grove Collaborative and BRC, as provided by MarketBeat.

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

Grove Collaborative presently has a consensus price target of $1.60, suggesting a potential upside of 4.58%. BRC has a consensus price target of $2.33, suggesting a potential upside of 239.64%. Given BRC’s stronger consensus rating and higher probable upside, analysts clearly believe BRC is more favorable than Grove Collaborative.

Summary

BRC beats Grove Collaborative on 10 of the 13 factors compared between the two stocks.

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.

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.