Contrasting Constellation Brands (STZ) and Its Peers

Constellation Brands (NYSE:STZGet Rating) is one of 30 publicly-traded companies in the “Beverages” industry, but how does it contrast to its competitors? We will compare Constellation Brands to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Risk and Volatility

Constellation Brands has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Constellation Brands’ competitors have a beta of 0.71, meaning that their average share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Constellation Brands and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Constellation Brands 0 6 12 0 2.67
Constellation Brands Competitors 278 1293 1458 32 2.41

Constellation Brands currently has a consensus price target of $273.17, indicating a potential upside of 10.37%. As a group, “Beverages” companies have a potential upside of 112.97%. Given Constellation Brands’ competitors higher probable upside, analysts plainly believe Constellation Brands has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Constellation Brands and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Constellation Brands $9.53 billion -$40.40 million -1,375.06
Constellation Brands Competitors $11.07 billion $1.69 billion -108.89

Constellation Brands’ competitors have higher revenue and earnings than Constellation Brands. Constellation Brands is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

68.8% of Constellation Brands shares are held by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are held by institutional investors. 15.6% of Constellation Brands shares are held by company insiders. Comparatively, 17.8% of shares of all “Beverages” companies are held 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.

Dividends

Constellation Brands pays an annual dividend of $0.93 per share and has a dividend yield of 0.4%. Constellation Brands pays out -516.7% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 1.3% and pay out 102.9% of their earnings in the form of a dividend. Constellation Brands has increased its dividend for 1 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Constellation Brands -0.42% 16.43% 7.62%
Constellation Brands Competitors -11.45% -22.68% -11.85%

Summary

Constellation Brands beats its competitors on 8 of the 15 factors compared.

Constellation Brands Company Profile (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, Prisoner, Robert Mondavi, and Schrader; and spirits under the Casa Noble, 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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