Choose Rain (OTCMKTS:RSAU) & Constellation Brands (NYSE:STZ) Critical Survey

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

Profitability

This table compares Choose Rain and Constellation Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Choose Rain	N/A	N/A	N/A
Constellation Brands	11.88%	29.82%	10.33%

Insider and Institutional Ownership

77.3% of Constellation Brands shares are held by institutional investors. 12.5% of Constellation Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Choose Rain has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Choose Rain and Constellation Brands, as reported by MarketBeat.com.

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

Constellation Brands has a consensus target price of $186.44, suggesting a potential upside of 38.82%. Given Constellation Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Constellation Brands is more favorable than Choose Rain.

Valuation & Earnings

This table compares Choose Rain and Constellation Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Choose Rain	N/A	N/A	-$670,000.00	($0.03)	-9.46
Constellation Brands	$10.96 billion	2.15	-$81.40 million	$6.85	19.61

Choose Rain has higher earnings, but lower revenue than Constellation Brands. Choose Rain is trading at a lower price-to-earnings ratio than Constellation Brands, indicating that it is currently the more affordable of the two stocks.

Summary

Constellation Brands beats Choose Rain on 13 of the 14 factors compared between the two stocks.

About Choose Rain

Choose Rain, Inc. collects, purifies, and filters rainwater into bottled drinking water. It serves its water to art shows, business meetings, college reunions, conventions, family reunions, festivals, golf tournaments, high school reunions, parades, parties/weddings, and sporting events. The company offers products through stores, small boutique locations, and its online store. The company was incorporated in 1998 and is based in Ormond Beach, Florida.

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.