Conagra Brands (NYSE:CAG) and BRC (NYSE:BRCC) Financial Survey

BRC (NYSE:BRCC) and Conagra Brands (NYSE:CAG) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for BRC and Conagra Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	0	3	0	2.50
Conagra Brands	5	12	1	0	1.78

BRC presently has a consensus target price of $22.50, indicating a potential upside of 132.08%. Conagra Brands has a consensus target price of $14.07, indicating a potential downside of 3.36%. Given BRC’s stronger consensus rating and higher probable upside, analysts plainly believe BRC is more favorable than Conagra Brands.

Earnings & Valuation

This table compares BRC and Conagra Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$398.26 million	0.61	-$11.91 million	($0.58)	-16.72
Conagra Brands	$11.28 billion	0.62	-$1.92 billion	($3.98)	-3.66

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

Institutional and Insider Ownership

16.3% of BRC shares are held by institutional investors. Comparatively, 83.8% of Conagra Brands shares are held by institutional investors. 54.9% of BRC shares are held by company insiders. Comparatively, 0.3% of Conagra Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BRC	-1.53%	-9.55%	-3.29%
Conagra Brands	-16.95%	11.46%	4.51%

Volatility & Risk

BRC has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Conagra Brands has a beta of 0.02, indicating that its share price is 98% less volatile than the S&P 500.

Summary

BRC beats Conagra Brands on 8 of the 13 factors compared between the two stocks.

About BRC

BRC Inc., which operates as Black Rifle Coffee Company, is a coffee and consumer-products company. Its offerings include roasted whole-bean and ground coffee, single-serve coffee, ready-to-drink beverages, and branded apparel and accessories. The company sells through its e-commerce platform and subscription service, as well as through wholesale partners and its retail locations. Its business primarily serves customers in the United States. Founded in 2014 by former U.S. Army Green Beret Evan Hafer, Black Rifle Coffee Company has built its brand around coffee and products marketed to military members, veterans, first responders, and other consumers.

About Conagra Brands

Conagra Brands is a packaged-food company that develops, manufactures and markets products for retail, foodservice and other customers. Its offerings include frozen meals and vegetables, snacks, baking products, condiments, cooking ingredients and meat snacks. The company’s portfolio includes brands such as Birds Eye, Healthy Choice, Marie Callender’s, Duncan Hines, Slim Jim, Orville Redenbacher’s, Hunt’s, Banquet and Reddi-wip. Its products are sold primarily in the United States, as well as in international markets.