BRC (NYSE:BRCC – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) 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 institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Insider and Institutional Ownership
16.3% of BRC shares are held by institutional investors. Comparatively, 88.4% of Purple Innovation shares are held by institutional investors. 73.8% of BRC shares are held by company insiders. Comparatively, 53.9% of Purple Innovation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
BRC has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BRC | 1 | 1 | 2 | 0 | 2.25 |
| Purple Innovation | 1 | 1 | 0 | 0 | 1.50 |
BRC presently has a consensus price target of $2.33, indicating a potential upside of 187.25%. Purple Innovation has a consensus price target of $1.00, indicating a potential upside of 43.76%. Given BRC’s stronger consensus rating and higher probable upside, research analysts clearly believe BRC is more favorable than Purple Innovation.
Earnings & Valuation
This table compares BRC and Purple Innovation”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BRC | $391.49 million | 0.52 | -$2.95 million | ($0.14) | -5.80 |
| Purple Innovation | $487.88 million | 0.15 | -$97.90 million | ($0.53) | -1.31 |
BRC has higher earnings, but lower revenue 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.
Profitability
This table compares BRC and Purple Innovation’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% |
| Purple Innovation | -12.40% | -472.12% | -13.35% |
Summary
BRC beats Purple Innovation 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 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.
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