Comparing Armanino Foods of Distinction (OTCMKTS:AMNF) & BRC (NYSE:BRCC)

BRC (NYSE:BRCC) and Armanino Foods of Distinction (OTCMKTS:AMNF) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Institutional and Insider Ownership

16.3% of BRC shares are owned by institutional investors. Comparatively, 0.1% of Armanino Foods of Distinction shares are owned by institutional investors. 54.9% of BRC shares are owned by company insiders. Comparatively, 30.2% of Armanino Foods of Distinction shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

BRC has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Armanino Foods of Distinction has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.

Valuation and Earnings

This table compares BRC and Armanino Foods of Distinction”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRC	$437.02 million	0.56	-$11.91 million	($0.58)	-16.96
Armanino Foods of Distinction	$76.10 million	5.13	$18.80 million	$0.63	20.20

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

Profitability

This table compares BRC and Armanino Foods of Distinction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRC	-1.53%	-9.55%	-3.29%
Armanino Foods of Distinction	24.57%	46.16%	34.56%

Analyst Recommendations

This is a breakdown of current ratings for BRC and Armanino Foods of Distinction, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRC	1	0	3	0	2.50
Armanino Foods of Distinction	0	1	1	1	3.00

BRC presently has a consensus price target of $22.50, indicating a potential upside of 128.68%. Armanino Foods of Distinction has a consensus price target of $15.00, indicating a potential upside of 17.90%. Given BRC’s higher probable upside, equities research analysts plainly believe BRC is more favorable than Armanino Foods of Distinction.

Summary

Armanino Foods of Distinction beats BRC on 9 of the 15 factors compared between the two stocks.

About BRC

Black Rifle Coffee Company (NYSE: BRCC) is a veteran-founded coffee and lifestyle company focused on producing, marketing and selling premium coffee products. Its offerings include whole-bean and ground coffee, single-serve options, ready-to-drink beverages, tea, brewing equipment, apparel and other branded merchandise. The company distributes its products through direct-to-consumer channels, including its online store and coffee subscription programs, as well as wholesale and retail partners. It also operates branded coffee shops and serves customers primarily in the United States, with its products available through a range of retail and e-commerce channels.

About Armanino Foods of Distinction

Armanino Foods of Distinction, Inc. manufactures and distributes specialty frozen Italian food products. Its offerings include pesto sauces, pasta and stuffed pasta, meatballs, Italian sauces, appetizers and other prepared foods. The company serves a range of customers, including foodservice distributors, restaurants, supermarkets, institutional food operators and food manufacturers. Its products are marketed for retail, foodservice and industrial applications, with distribution primarily in the United States and select international markets.