Reviewing Vintage Wine Estates (NASDAQ:VWE) and Drinks Americas (OTCMKTS:DKAM)

Drinks Americas (OTCMKTS:DKAMGet Rating) and Vintage Wine Estates (NASDAQ:VWEGet Rating) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Drinks Americas and Vintage Wine Estates, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Drinks Americas 0 0 0 0 N/A
Vintage Wine Estates 0 0 2 0 3.00

Vintage Wine Estates has a consensus price target of 12.50, suggesting a potential upside of 120.85%. Given Vintage Wine Estates’ higher possible upside, analysts plainly believe Vintage Wine Estates is more favorable than Drinks Americas.

Institutional and Insider Ownership

46.6% of Vintage Wine Estates shares are owned by institutional investors. 54.9% of Vintage Wine Estates shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Drinks Americas has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Vintage Wine Estates has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Drinks Americas and Vintage Wine Estates’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Drinks Americas N/A N/A N/A
Vintage Wine Estates 3.32% 5.05% 2.39%

Valuation and Earnings

This table compares Drinks Americas and Vintage Wine Estates’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Drinks Americas N/A N/A N/A N/A N/A
Vintage Wine Estates $220.74 million 1.56 $9.87 million 0.06 94.35

Vintage Wine Estates has higher revenue and earnings than Drinks Americas.

Summary

Vintage Wine Estates beats Drinks Americas on 8 of the 9 factors compared between the two stocks.

About Drinks Americas

(Get Rating)

Drinks Americas Holdings, Ltd. produces, imports, distributes, and markets premium wine and spirits, and alcoholic beverages to beverage wholesalers in the United States and internationally. The company offers premium authentic Mexican beer products under the brand names of Day of the Dead Beer, Mexicali, Rio Bravo, Red Pig, and Chili Beer. The company also markets and distributes non-alcoholic beverages. It offers its products through various retailers and restaurant chains. Drinks Americas Holdings, Ltd. was founded in 1986 and is based in Los Angeles, California.

About Vintage Wine Estates

(Get Rating)

Vintage Wine Estates, Inc. produces and sells wines and craft spirits in the United States, Canada, and internationally. The company offers its products under the Layer Cake, Firesteed, Bar Dog, Middle Sister, Cherry Pie, Cartlidge & Browne, GAZE Wine Cocktails, Girard, Clos Pegase, Laetitia Vineyard and Winery, Swanson Vineyards, Kunde Family Winery, Viansa, and B.R. Cohn Winery. It also owns and operates hospitality facilities; and provides bottling, fulfillment, and storage services to other companies on a contract basis. The company was founded in 2019 and is headquartered in Incline Village, Nevada.

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