Critical Review: Heritage Distilling (NASDAQ:IPST) and Spirits Capital (OTCMKTS:SSCC)

Spirits Capital (OTCMKTS:SSCC) and Heritage Distilling (NASDAQ:IPST) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Profitability

This table compares Spirits Capital and Heritage Distilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirits Capital	N/A	N/A	N/A
Heritage Distilling	2,132.99%	-13.65%	-10.11%

Risk & Volatility

Spirits Capital has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Heritage Distilling has a beta of 6.04, meaning that its share price is 504% more volatile than the S&P 500.

Valuation and Earnings

This table compares Spirits Capital and Heritage Distilling”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirits Capital	N/A	N/A	-$5.59 million	($0.07)	-31.71
Heritage Distilling	$8.40 million	1.67	$710,000.00	($22.15)	-0.07

Heritage Distilling has higher revenue and earnings than Spirits Capital. Spirits Capital is trading at a lower price-to-earnings ratio than Heritage Distilling, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Spirits Capital and Heritage Distilling, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirits Capital	0	0	0	0	0.00
Heritage Distilling	1	0	1	0	2.00

Heritage Distilling has a consensus price target of $8.20, suggesting a potential upside of 457.82%. Given Heritage Distilling’s stronger consensus rating and higher probable upside, analysts plainly believe Heritage Distilling is more favorable than Spirits Capital.

Summary

Heritage Distilling beats Spirits Capital on 8 of the 11 factors compared between the two stocks.

About Spirits Capital

Spirits Cap Corp. operates a financial technology platform. Its platform provides secured purchase of American whiskey while maturing. The company was incorporated in 1995 and is based in Newport Beach, California.

About Heritage Distilling

Heritage Distilling Holding Company Inc. is a craft distiller of premium brands, including whiskeys, vodkas, gins, rums and ready-to-drink canned cocktails. Heritage Distilling Holding Company Inc. is based in GIG HARBOR, Wash.