Head-To-Head Review: Constellation Brands (NYSE:STZ) and BRC (NYSE:BRCC)

BRC (NYSE:BRCCGet Rating) and Constellation Brands (NYSE:STZGet Rating) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

22.1% of BRC shares are owned by institutional investors. Comparatively, 75.0% of Constellation Brands shares are owned by institutional investors. 15.8% of Constellation Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BRC and Constellation Brands’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BRC $233.10 million 9.58 -$13.85 million N/A N/A
Constellation Brands $9.53 billion 4.92 -$40.40 million ($0.18) -1,382.89

BRC has higher earnings, but lower revenue than Constellation Brands.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BRC and Constellation Brands, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRC 0 5 2 0 2.29
Constellation Brands 0 6 11 0 2.65

BRC currently has a consensus price target of $18.83, suggesting a potential upside of 64.05%. Constellation Brands has a consensus price target of $273.65, suggesting a potential upside of 9.93%. Given BRC’s higher probable upside, research analysts clearly believe BRC is more favorable than Constellation Brands.

Profitability

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

Net Margins Return on Equity Return on Assets
BRC N/A N/A -4.91%
Constellation Brands -0.42% 16.43% 7.62%

Summary

Constellation Brands beats BRC on 7 of the 11 factors compared between the two stocks.

About BRC (Get Rating)

BRC Inc., through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel. The company also produces media content; podcasts; and digital and print journals, 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 convenience, grocery, drug, and mass merchandise stores; outdoor, do it yourself, and lifestyle retailers; 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 Constellation Brands (Get Rating)

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily under the Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands. The company offers wine under the 7 Moons, Cook's California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, Charles Smith, The Prisoner Wine Company, Robert Mondavi, My Favorite Neighbor, and Schrader; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

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