BRC (NYSE:BRCC) and Greystone Logistics (OTCMKTS:GLGI) Critical Analysis

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

Analyst Recommendations

This is a breakdown of current ratings for Greystone Logistics and BRC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Logistics	0	0	0	0	0.00
BRC	1	1	2	0	2.25

BRC has a consensus target price of $2.33, suggesting a potential upside of 219.63%. Given BRC’s stronger consensus rating and higher possible upside, analysts plainly believe BRC is more favorable than Greystone Logistics.

Volatility and Risk

Greystone Logistics has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, BRC has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Valuation and Earnings

This table compares Greystone Logistics 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
Greystone Logistics	$57.87 million	0.15	$2.35 million	($0.04)	-7.75
BRC	$391.40 million	0.46	-$2.95 million	($0.14)	-5.21

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

Insider and Institutional Ownership

10.3% of Greystone Logistics shares are owned by institutional investors. Comparatively, 16.3% of BRC shares are owned by institutional investors. 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 is poised for long-term growth.

Profitability

This table compares Greystone Logistics and BRC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Logistics	-1.86%	-4.88%	-2.10%
BRC	-2.86%	-11.48%	-2.60%

Summary

BRC beats Greystone Logistics on 9 of the 14 factors compared between the two stocks.

About Greystone Logistics

Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.

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.