Head to Head Review: Armanino Foods of Distinction (OTCMKTS:AMNF) vs. BRC (NYSE:BRCC)

BRC (NYSE:BRCC) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings for BRC and Armanino Foods of Distinction, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	0	3	0	2.50
Armanino Foods of Distinction	0	1	1	1	3.00

BRC currently has a consensus target price of $22.50, indicating a potential upside of 135.01%. Armanino Foods of Distinction has a consensus target price of $15.00, indicating a potential upside of 24.48%. Given BRC’s higher possible upside, equities analysts clearly believe BRC is more favorable than Armanino Foods of Distinction.

Earnings & Valuation

This table compares BRC and Armanino Foods of Distinction”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$398.26 million	0.60	-$11.91 million	($0.30)	-31.91
Armanino Foods of Distinction	$76.10 million	4.86	$18.80 million	$0.63	19.13

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

Volatility and Risk

BRC has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BRC	-1.53%	-9.44%	-3.17%
Armanino Foods of Distinction	24.57%	46.16%	34.56%

Institutional & Insider Ownership

16.3% of BRC shares are held by institutional investors. Comparatively, 0.1% of Armanino Foods of Distinction shares are held by institutional investors. 54.9% of BRC shares are held by company insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are held by company 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

Armanino Foods of Distinction beats BRC on 9 of the 15 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 Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. produces and markets frozen food products in the United States. The company offers gourmet beef, Italian style beef and pork, and smoked turkey meatballs; grated parmesan and 3 cheese blend cheese; and various pesto, such as basil, artichoke, cilantro, dried tomato and garlic, roasted garlic, roasted red bell pepper, and southwest chipotle. It also provides frozen pasta, which includes beef cannelloni, cheese manicotti, cheese stuffed shells, cheese tortellini; pasta sheets, potato gnocchi, and tricolor cheese tortellini, as well as beef, butternut squash, four cheese, cheese and spinach, and wild mushroom ravioli; and various sauces, comprising creamy garlic, alfresco, Bolognese, chimichurri, harissa, and romesco. The company offers its products under the Armanino brand. It markets its products through a network of food brokers and sells to retail and foodservice distributors, club-type stores, and industrial accounts. The company was founded in 1978 and is based in Hayward, California.