Critical Contrast: Constellation Brands (NYSE:STZ) versus Carlsberg AS (OTCMKTS:CABGY)

Constellation Brands (NYSE:STZ) and Carlsberg AS (OTCMKTS:CABGY) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Constellation Brands pays an annual dividend of $4.08 per share and has a dividend yield of 2.6%. Carlsberg AS pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Constellation Brands pays out 64.4% of its earnings in the form of a dividend. Constellation Brands has increased its dividend for 5 consecutive years. Constellation Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Constellation Brands and Carlsberg AS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Brands	$9.38 billion	2.87	-$81.40 million	$6.34	24.49
Carlsberg AS	$13.49 billion	1.26	$901.59 million	N/A	N/A

Carlsberg AS has higher revenue and earnings than Constellation Brands.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Constellation Brands and Carlsberg AS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	2	8	12	1	2.52
Carlsberg AS	0	1	2	2	3.20

Constellation Brands presently has a consensus price target of $178.50, suggesting a potential upside of 14.98%. Given Constellation Brands’ higher possible upside, research analysts clearly believe Constellation Brands is more favorable than Carlsberg AS.

Volatility & Risk

Constellation Brands has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Carlsberg AS has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Constellation Brands	11.08%	29.15%	10.20%
Carlsberg AS	N/A	N/A	N/A

Summary

Constellation Brands beats Carlsberg AS on 10 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 Carlsberg AS

Carlsberg A/S produces and sells beer and other beverage products in Denmark, China, the United Kingdom, and internationally. The company offers core, craft, and specialty beers; soft drinks; and alcohol-free brews under various brands. The company was founded in 1847 and is headquartered in Copenhagen, Denmark.