Critical Analysis: Diageo (NYSE:DEO) vs. Campari Group (OTCMKTS:DVDCF)

Campari Group (OTCMKTS:DVDCF) and Diageo (NYSE:DEO) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

9.0% of Diageo shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Campari Group has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Campari Group and Diageo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Campari Group	0	3	0	1	2.50
Diageo	2	3	4	0	2.22

Diageo has a consensus price target of $119.00, suggesting a potential upside of 21.81%. Given Diageo’s higher probable upside, analysts clearly believe Diageo is more favorable than Campari Group.

Profitability

This table compares Campari Group and Diageo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Campari Group	N/A	N/A	N/A
Diageo	N/A	N/A	N/A

Earnings and Valuation

This table compares Campari Group and Diageo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Campari Group	$3.32 billion	2.49	$218.15 million	N/A	N/A
Diageo	$20.25 billion	2.69	$2.35 billion	$6.85	14.26

Diageo has higher revenue and earnings than Campari Group.

Summary

Diageo beats Campari Group on 6 of the 8 factors compared between the two stocks.

About Campari Group

Davide Campari-Milano N.V., together with its subsidiaries, markets and distributes alcoholic and non-alcoholic beverages in the Americas, the Middle East, Africa, Europe, and the Asia-Pacific. It offers a range of spirits categories, including aperitif, vodka, liqueurs, whisky, tequila, rum, Sparkling wine, mezcal, champagne, gin, and cognac, as well as ready to drink and non-alcoholic aperitif under the Aperol, Campari, SKYY, Wild Turkey, Grand Marnier, Jamaican Rums, Espolòn, Sparkling Wine&Vermouth, Crodino, The GlenGrant, Magnum Tonic Wine, Montelobos, Ancho Reyes, Lallier, Forty Creek, X-Rated, and other brands. Davide Campari-Milano N.V. was founded in 1860 and is headquartered in Sesto San Giovanni, Italy. Davide Campari-Milano N.V. is a subsidiary of Lagfin S.C.A.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products. The company provides its products under the Johnnie Walker, Crown Royal, J&B, Buchanan’s, Smirnoff, Cîroc, Ketel One, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, Guinness, Shui Jing Fang, Yenì, McDowell’s, Don Papa, Aviation American, Seagram, Seagram’s 7 Crown, Zacapa, Black Dog, Black & White, Signature, Royal Challenge, Godawan, Antiquity, Gordon’s, Old Parr, Windsor, Bundaberg, Ypióca, Bulleit, and Bell’s brand names. It operates in the United States, the United Kingdom, Türkiye, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.