Reviewing Diageo (NYSE:DEO) and Remy Cointreau (OTCMKTS:REMYY)

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

Institutional and Insider 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 stock will outperform the market over the long term.

Valuation & Earnings

This table compares Remy Cointreau and Diageo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Remy Cointreau	$1.06 billion	2.33	$130.21 million	N/A	N/A
Diageo	$20.25 billion	2.55	$2.35 billion	N/A	N/A

Diageo has higher revenue and earnings than Remy Cointreau.

Analyst Recommendations

This is a breakdown of current recommendations for Remy Cointreau and Diageo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remy Cointreau	3	2	1	1	2.00
Diageo	3	3	5	0	2.18

Diageo has a consensus price target of $116.50, suggesting a potential upside of 25.61%. Given Diageo’s stronger consensus rating and higher probable upside, analysts plainly believe Diageo is more favorable than Remy Cointreau.

Volatility & Risk

Remy Cointreau has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Profitability

This table compares Remy Cointreau and Diageo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Remy Cointreau	N/A	N/A	N/A
Diageo	N/A	N/A	N/A

Dividends

Remy Cointreau pays an annual dividend of $0.10 per share and has a dividend yield of 2.1%. Diageo pays an annual dividend of $4.95 per share and has a dividend yield of 5.3%.

Summary

Diageo beats Remy Cointreau on 8 of the 10 factors compared between the two stocks.

About Remy Cointreau

Rémy Cointreau SA, together with its subsidiaries, engages in the production, sale, and distribution of liqueurs and spirits. It operates through Rémy Martin, Liqueurs & Spirits, and Partner Brands segments. The company offers cognacs, liqueurs, single malt whiskies, gins, rums, brandies, wines, and champagnes primarily under the Cointreau, Metaxa, St-Rémy, Mount Gay, Bruichladdich, The Botanist, Westland, Le Domaine des Hautes Glaces, Belle de Brillet, Telmont, Port Charlotte, Octomore, Rémy Martin, and LOUIS XIII brands. It operates in Europe, the Middle East, Africa, the Americas, Asia, Australia, and New Zealand. The company was founded in 1724 and is headquartered in Cognac, France.

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.