Head to Head Review: BRC (NYSE:BRCC) and Colgate-Palmolive (NYSE:CL)

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

Institutional & Insider Ownership

16.3% of BRC shares are owned by institutional investors. Comparatively, 80.4% of Colgate-Palmolive shares are owned by institutional investors. 69.0% of BRC shares are owned by insiders. Comparatively, 0.3% of Colgate-Palmolive shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares BRC and Colgate-Palmolive”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$398.26 million	0.50	-$11.91 million	($0.14)	-5.67
Colgate-Palmolive	$20.38 billion	3.35	$2.13 billion	$2.62	32.46

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

Analyst Ratings

This is a summary of recent recommendations for BRC and Colgate-Palmolive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	1	1	0	2.00
Colgate-Palmolive	0	6	11	0	2.65

BRC presently has a consensus price target of $2.33, indicating a potential upside of 193.87%. Colgate-Palmolive has a consensus price target of $95.19, indicating a potential upside of 11.93%. Given BRC’s higher probable upside, equities analysts clearly believe BRC is more favorable than Colgate-Palmolive.

Profitability

This table compares BRC and Colgate-Palmolive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRC	-2.99%	-21.46%	-5.42%
Colgate-Palmolive	10.45%	353.72%	17.63%

Risk and Volatility

BRC has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Colgate-Palmolive has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Summary

Colgate-Palmolive beats BRC on 11 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 Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.