Head-To-Head Survey: Constellation Brands (STZ.B) vs. Keurig Dr Pepper (KDP)

Constellation Brands (NYSE:STZ.B) and Keurig Dr Pepper (NYSE:KDP) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Constellation Brands and Keurig Dr Pepper, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Constellation Brands 0 0 0 0 N/A
Keurig Dr Pepper 0 8 2 0 2.20

Keurig Dr Pepper has a consensus price target of $26.55, indicating a potential upside of 0.75%. Given Keurig Dr Pepper’s higher possible upside, analysts clearly believe Keurig Dr Pepper is more favorable than Constellation Brands.

Institutional and Insider Ownership

0.1% of Constellation Brands shares are owned by institutional investors. Comparatively, 10.9% of Keurig Dr Pepper shares are owned by institutional investors. 96.8% of Constellation Brands shares are owned by company insiders. Comparatively, 0.6% of Keurig Dr Pepper shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Constellation Brands and Keurig Dr Pepper’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Constellation Brands $8.33 billion 4.47 $2.32 billion N/A N/A
Keurig Dr Pepper $6.69 billion 5.47 $1.08 billion $4.54 5.80

Constellation Brands has higher revenue and earnings than Keurig Dr Pepper.

Dividends

Constellation Brands pays an annual dividend of $2.68 per share and has a dividend yield of 1.4%. Keurig Dr Pepper pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Keurig Dr Pepper pays out 13.2% of its earnings in the form of a dividend.

Volatility & Risk

Constellation Brands has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Profitability

This table compares Constellation Brands and Keurig Dr Pepper’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Constellation Brands 38.18% 18.63% 8.09%
Keurig Dr Pepper 13.55% 15.76% 5.94%

Summary

Constellation Brands beats Keurig Dr Pepper on 7 of the 13 factors compared between the two stocks.

Constellation Brands Company Profile

Constellation Brands, Inc. is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States. It sells a number of brands in the import and craft beer categories, including Corona Extra, Corona Light, Modelo Especial, Ballast Point and others. It is a producer and marketer of wine, and sells a number of wine brands across various categories, including table wine, sparkling wine and dessert wine, and across all price points, such as popular, premium and luxury categories. Some of its wine and spirits brands sold in the United States, which comprise its U.S. Focus Brands (Focus Brands) include Meiomi, Robert Mondavi, Wild Horse and others.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper Inc. engages in the brewing system and specialty coffee businesses in the United States and Canada. The company sources, produces, and sells coffee, hot cocoa, teas, and other beverages in K-Cup, Vue, Rivo, K-Carafe, and K-Mug pods brands; coffee in traditional packaging, including bags and fractional packs; and other specialty beverages in pods. It distributes its products through at-home and away-from-home channels to retailers, including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; and restaurants, hospitality accounts, office coffee distributors, and partner brand owners, as well as to consumers through its Websites. The company was founded in 1981 and is based in Waterbury, Vermont. Keurig Dr Pepper Inc. is a subsidiary of Acorn Holdings B.V.

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