Critical Comparison: BRC (NYSE:BRCC) and Warby Parker (NYSE:WRBY)

BRC (NYSE:BRCC) and Warby Parker (NYSE:WRBY) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations for BRC and Warby Parker, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	0	2	2	0	2.50
Warby Parker	0	9	10	0	2.53

BRC currently has a consensus target price of $2.88, indicating a potential upside of 88.52%. Warby Parker has a consensus target price of $22.88, indicating a potential downside of 2.68%. Given BRC’s higher possible upside, analysts clearly believe BRC is more favorable than Warby Parker.

Profitability

This table compares BRC and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRC	-1.67%	-2.09%	-0.46%
Warby Parker	-1.79%	-2.48%	-1.29%

Valuation and Earnings

This table compares BRC and Warby Parker”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$383.07 million	0.85	-$2.95 million	($0.09)	-16.94
Warby Parker	$795.09 million	3.09	-$20.39 million	($0.12)	-195.88

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

Institutional & Insider Ownership

16.3% of BRC shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 69.0% of BRC shares are owned by insiders. Comparatively, 18.2% of Warby Parker shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

BRC has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Warby Parker has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.

Summary

BRC beats Warby Parker on 8 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 Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.