BRC (NYSE:BRCC) and Newell Brands (NASDAQ:NWL) Financial Comparison

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

Profitability

This table compares Newell Brands and BRC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newell Brands	-3.91%	8.89%	2.03%
BRC	-2.17%	-14.55%	-4.14%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.20 billion	0.21	-$285.00 million	($0.67)	-5.34
BRC	$398.26 million	1.12	-$11.91 million	($0.10)	-17.85

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

Volatility and Risk

Newell Brands has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, BRC has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

92.5% of Newell Brands shares are held by institutional investors. Comparatively, 16.3% of BRC shares are held by institutional investors. 1.6% of Newell Brands shares are held by company insiders. Comparatively, 54.9% of BRC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Newell Brands and BRC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	2	5	3	0	2.10
BRC	1	0	2	0	2.33

Newell Brands currently has a consensus target price of $4.94, indicating a potential upside of 38.11%. BRC has a consensus target price of $2.50, indicating a potential upside of 40.06%. Given BRC’s stronger consensus rating and higher possible upside, analysts clearly believe BRC is more favorable than Newell Brands.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.

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.