Analyzing BRC (NYSE:BRCC) and Ollie’s Bargain Outlet (NASDAQ:OLLI)

BRC (NYSE:BRCC) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Valuation and Earnings

This table compares BRC and Ollie’s Bargain Outlet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$398.26 million	0.55	-$11.91 million	($0.14)	-6.33
Ollie’s Bargain Outlet	$2.65 billion	2.33	$240.60 million	$3.90	25.82

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BRC and Ollie’s Bargain Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	1	1	0	2.00
Ollie’s Bargain Outlet	0	3	13	0	2.81

BRC presently has a consensus target price of $2.33, suggesting a potential upside of 163.36%. Ollie’s Bargain Outlet has a consensus target price of $141.50, suggesting a potential upside of 40.52%. Given BRC’s higher probable upside, equities analysts plainly believe BRC is more favorable than Ollie’s Bargain Outlet.

Insider & Institutional Ownership

16.3% of BRC shares are owned by institutional investors. 69.0% of BRC shares are owned by company insiders. Comparatively, 0.8% of Ollie’s Bargain Outlet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

BRC has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares BRC and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRC	-2.99%	-21.46%	-5.42%
Ollie’s Bargain Outlet	9.08%	13.18%	8.43%

Summary

Ollie’s Bargain Outlet beats BRC on 10 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 Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.