BRC Inc. (BRCC) vs Lifeway Foods, Inc. (LWAY)

BRC Inc. and Lifeway Foods, Inc. are both Packaged Foods companies. Lifeway Foods, Inc. is the larger, with a market value of $331.0M against $226.3M — 1.5× the size. BRC Inc. has negative trailing earnings, so its P/E is not meaningful; Lifeway Foods, Inc. trades at 30.2×. Lifeway Foods, Inc. grew revenue faster over the last twelve months: 25.6% against 10.5%. Lifeway Foods, Inc. has the higher net margin (4.48% vs −0.89%) and the higher return on invested capital (9.89% vs −2.77%). Across the 20 metrics below, Lifeway Foods, Inc. leads on 12 and BRC Inc. on 8.

Valuation

Metric BRCC LWAY Packaged Foods median
P/E n/m 30.19 12.69
P/S 0.25 1.36 0.61
P/B 1.48 3.90 1.47
Price to free cash flow 8.50 n/m 8.50
EV/EBITDA 18.82 17.29 8.20
EV/Sales 0.30 1.43 0.85
Earnings yield (3.25%) 3.31% 0.00%
Free cash flow yield 11.77% (9.37%) 6.05%

Profitability

Metric BRCC LWAY Packaged Foods median
Gross margin 33.95% 25.64% 27.54%
Operating margin (0.96%) 6.49% 0.00%
Net margin (0.89%) 4.48% 0.00%
Free cash flow margin 2.98% (12.74%) 2.56%
Return on equity (7.00%) 13.32% 0.00%
Return on assets (1.77%) 9.43% 0.00%
Return on invested capital (2.77%) 9.89% 0.00%

Growth

Metric BRCC LWAY Packaged Foods median
Revenue growth (TTM) 10.49% 25.59% 5.69%
EPS growth (last fiscal year) (225.00%) 48.33% —
Revenue growth, 5-year CAGR 19.43% 15.81% 3.81%
Net income growth, 5-year CAGR 0.00% 33.80% 0.00%

Health

Metric BRCC LWAY Packaged Foods median
Debt to equity 0.43 0.26 0.26
Current ratio 1.42 2.09 1.64
Net debt to EBITDA (2.69) (0.28) 0.87

Dividend

Metric BRCC LWAY Packaged Foods median
Dividend yield — — 3.21%
Payout ratio 0.00 0.00 0.00

Size

Metric BRCC LWAY Packaged Foods median
Market cap 226.26m 330.99m 245.45m

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