Comparing Tsingtao Brewery (OTCMKTS:TSGTY) & Constellation Brands (NYSE:STZ)

Constellation Brands (NYSE:STZ) and Tsingtao Brewery (OTCMKTS:TSGTY) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Profitability

This table compares Constellation Brands and Tsingtao Brewery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellation Brands	11.88%	29.82%	10.33%
Tsingtao Brewery	N/A	N/A	N/A

Risk and Volatility

Constellation Brands has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Tsingtao Brewery has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Valuation & Earnings

This table compares Constellation Brands and Tsingtao Brewery”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Brands	$10.96 billion	2.23	-$81.40 million	$6.85	20.39
Tsingtao Brewery	$4.47 billion	2.15	$604.42 million	N/A	N/A

Tsingtao Brewery has lower revenue, but higher earnings than Constellation Brands.

Analyst Recommendations

This is a summary of recent ratings and target prices for Constellation Brands and Tsingtao Brewery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	4	10	13	1	2.39
Tsingtao Brewery	0	0	0	0	0.00

Constellation Brands presently has a consensus price target of $186.44, suggesting a potential upside of 33.50%. Given Constellation Brands’ stronger consensus rating and higher possible upside, research analysts clearly believe Constellation Brands is more favorable than Tsingtao Brewery.

Insider and Institutional Ownership

77.3% of Constellation Brands shares are held by institutional investors. 12.5% of Constellation Brands shares are held 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.

Dividends

Constellation Brands pays an annual dividend of $4.08 per share and has a dividend yield of 2.9%. Tsingtao Brewery pays an annual dividend of $1.34 per share and has a dividend yield of 3.8%. Constellation Brands pays out 59.6% of its earnings in the form of a dividend. Constellation Brands has raised its dividend for 5 consecutive years.

Summary

Constellation Brands beats Tsingtao Brewery on 13 of the 16 factors compared between the two stocks.

About Constellation Brands

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. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company 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.

About Tsingtao Brewery

Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products worldwide. It operates through seven segments: Shandong Region; South China Region; North China Region; East China Region; Southeast China Region; Hong Kong, Macau and Other Overseas Region; and Finance Company. The company sells its beer products primarily under the Tsingtao and Laoshan brand names. It also provides wealth management, and agency collection and payment services; and financing, construction, and logistics services, as well as technology promotion and application services. Tsingtao Brewery Company Limited was founded in 1903 and is headquartered in Qingdao, the People's Republic of China.