Financial Analysis: BRC (NYSE:BRCC) vs. Nomad Foods (NYSE:NOMD)

Nomad Foods (NYSE:NOMD) and BRC (NYSE:BRCC) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Risk & Volatility

Nomad Foods has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, BRC has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nomad Foods and BRC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomad Foods	1	2	3	0	2.33
BRC	1	0	3	0	2.50

Nomad Foods presently has a consensus target price of $13.25, suggesting a potential upside of 20.79%. BRC has a consensus target price of $22.50, suggesting a potential upside of 159.82%. Given BRC’s stronger consensus rating and higher possible upside, analysts plainly believe BRC is more favorable than Nomad Foods.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomad Foods	$3.43 billion	0.45	$154.66 million	$1.02	10.75
BRC	$398.26 million	0.54	-$11.91 million	($0.30)	-28.87

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

Profitability

This table compares Nomad Foods and BRC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nomad Foods	4.20%	8.88%	3.53%
BRC	-0.89%	-5.33%	-1.79%

Insider and Institutional Ownership

75.3% of Nomad Foods shares are owned by institutional investors. Comparatively, 16.3% of BRC shares are owned by institutional investors. 54.9% of BRC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Nomad Foods beats BRC on 8 of the 13 factors compared between the two stocks.

About Nomad Foods

Nomad Foods Limited, together with its subsidiaries, manufactures, markets, and distributes a range of frozen food products in the United Kingdom and internationally. The company offers frozen fish products, including fish fingers, coated fish, and natural fish; ready-to-cook vegetable products, such as peas and spinach; and frozen poultry and meat products comprising nuggets, grills, and burgers. It also provides meal products that include ready-to-cook noodles, pasta, lasagna, pancakes, and other ready-made meals; ice creams, such as in-home and out-of-home ice creams; and other products consisting of soups, pizzas, bakery goods, and meat substitutes. The company sells its products to supermarkets and food retail chains primarily under the Birds Eye, Green Cuisine, iglo, Findus, Aunt Bessie's, Goodfella's, Frikom, Ledo, La Cocinera, and Belviva brand names. Nomad Foods Limited was founded in 2014 and is headquartered in Feltham, the United Kingdom.

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.