Financial Contrast: Conagra Brands (NYSE:CAG) and BRC (NYSE:BRCC)

Conagra Brands (NYSE:CAG) and BRC (NYSE:BRCC) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Conagra Brands and BRC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conagra Brands	-16.95%	11.46%	4.51%
BRC	-1.53%	-9.55%	-3.29%

Analyst Recommendations

This is a breakdown of recent recommendations for Conagra Brands and BRC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conagra Brands	5	12	1	0	1.78
BRC	1	0	3	0	2.50

Conagra Brands currently has a consensus target price of $14.07, indicating a potential downside of 3.36%. BRC has a consensus target price of $22.50, indicating a potential upside of 132.08%. Given BRC’s stronger consensus rating and higher possible upside, analysts plainly believe BRC is more favorable than Conagra Brands.

Insider & Institutional Ownership

83.8% of Conagra Brands shares are owned by institutional investors. Comparatively, 16.3% of BRC shares are owned by institutional investors. 0.3% of Conagra Brands shares are owned by insiders. Comparatively, 54.9% of BRC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Conagra Brands and BRC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conagra Brands	$11.28 billion	0.62	-$1.92 billion	($3.98)	-3.66
BRC	$398.26 million	0.61	-$11.91 million	($0.58)	-16.72

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

Volatility & Risk

Conagra Brands has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, BRC has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Summary

BRC beats Conagra Brands on 8 of the 13 factors compared between the two stocks.

About Conagra Brands

Conagra Brands is a packaged-food company that develops, manufactures and markets products for retail, foodservice and other customers. Its offerings include frozen meals and vegetables, snacks, baking products, condiments, cooking ingredients and meat snacks. The company’s portfolio includes brands such as Birds Eye, Healthy Choice, Marie Callender’s, Duncan Hines, Slim Jim, Orville Redenbacher’s, Hunt’s, Banquet and Reddi-wip. Its products are sold primarily in the United States, as well as in international markets.

About BRC

BRC Inc., which operates as Black Rifle Coffee Company, is a coffee and consumer-products company. Its offerings include roasted whole-bean and ground coffee, single-serve coffee, ready-to-drink beverages, and branded apparel and accessories. The company sells through its e-commerce platform and subscription service, as well as through wholesale partners and its retail locations. Its business primarily serves customers in the United States. Founded in 2014 by former U.S. Army Green Beret Evan Hafer, Black Rifle Coffee Company has built its brand around coffee and products marketed to military members, veterans, first responders, and other consumers.