BRC (NYSE:BRCC – Get Free Report) and Yatsen (NYSE:YSG – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Profitability
This table compares BRC and Yatsen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BRC | -2.86% | -11.48% | -2.60% |
| Yatsen | -11.54% | -15.36% | -11.80% |
Earnings & Valuation
This table compares BRC and Yatsen”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BRC | $391.49 million | 0.76 | -$2.95 million | ($0.14) | -8.54 |
| Yatsen | $464.90 million | 0.84 | -$97.02 million | ($0.69) | -5.99 |
BRC has higher earnings, but lower revenue than Yatsen. BRC is trading at a lower price-to-earnings ratio than Yatsen, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
BRC has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -2.11, meaning that its share price is 311% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for BRC and Yatsen, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BRC | 1 | 2 | 2 | 0 | 2.20 |
| Yatsen | 1 | 0 | 0 | 0 | 1.00 |
BRC presently has a consensus target price of $2.50, indicating a potential upside of 109.21%. Given BRC’s stronger consensus rating and higher possible upside, analysts clearly believe BRC is more favorable than Yatsen.
Insider and Institutional Ownership
16.3% of BRC shares are owned by institutional investors. 69.0% of BRC shares are owned by company insiders. Comparatively, 29.0% of Yatsen shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
BRC beats Yatsen on 11 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 Yatsen
Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.
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