Critical Comparison: BRC (NYSE:BRCC) vs. Innovation Beverage Group (NASDAQ:IBG)

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

Profitability

This table compares Innovation Beverage Group and BRC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovation Beverage Group	N/A	N/A	N/A
BRC	-1.22%	23.35%	5.11%

Analyst Recommendations

This is a summary of recent ratings and price targets for Innovation Beverage Group and BRC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovation Beverage Group	0	0	1	0	3.00
BRC	0	3	3	0	2.50

BRC has a consensus price target of $4.60, suggesting a potential upside of 117.49%. Given BRC’s higher probable upside, analysts plainly believe BRC is more favorable than Innovation Beverage Group.

Insider & Institutional Ownership

16.3% of BRC shares are owned by institutional investors. 73.8% of BRC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Innovation Beverage Group and BRC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovation Beverage Group	$3.15 million	1.74	N/A	N/A	N/A
BRC	$391.49 million	1.15	-$16.75 million	($0.04)	-52.88

Innovation Beverage Group has higher earnings, but lower revenue than BRC.

Summary

BRC beats Innovation Beverage Group on 7 of the 10 factors compared between the two stocks.

About Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.

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.