Analyzing BRC (NYSE:BRCC) and John B. Sanfilippo & Son (NASDAQ:JBSS)

John B. Sanfilippo & Son (NASDAQ:JBSS) and BRC (NYSE:BRCC) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for John B. Sanfilippo & Son and BRC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John B. Sanfilippo & Son	0	2	2	1	2.80
BRC	1	0	3	0	2.50

John B. Sanfilippo & Son presently has a consensus price target of $100.00, indicating a potential upside of 38.06%. BRC has a consensus price target of $22.50, indicating a potential upside of 155.97%. Given BRC’s higher probable upside, analysts plainly believe BRC is more favorable than John B. Sanfilippo & Son.

Institutional & Insider Ownership

70.6% of John B. Sanfilippo & Son shares are owned by institutional investors. Comparatively, 16.3% of BRC shares are owned by institutional investors. 30.2% of John B. Sanfilippo & Son shares are owned by company insiders. Comparatively, 54.9% of BRC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares John B. Sanfilippo & Son and BRC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John B. Sanfilippo & Son	$1.18 billion	0.72	$61.93 million	$5.26	13.77
BRC	$398.26 million	0.55	-$11.91 million	($0.30)	-29.30

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

Risk & Volatility

John B. Sanfilippo & Son has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, BRC has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares John B. Sanfilippo & Son and BRC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John B. Sanfilippo & Son	5.27%	16.51%	9.81%
BRC	-0.89%	-5.33%	-1.79%

Summary

John B. Sanfilippo & Son beats BRC on 11 of the 15 factors compared between the two stocks.

About John B. Sanfilippo & Son

John B. Sanfilippo & Son, Inc. engages in the processing and distribution of nuts and nut-related products. It offers peanuts, pecans, cashews, walnuts, almonds, and other nuts under the brands of Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts. The company was founded by Gaspare Sanfilippo and John B. Sanfilippo in 1922 and is headquartered in Elgin, IL.

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.