Constellation Brands, Inc. Class A (NYSE:STZ) and PERNOD RICARD S/ADR (OTCMKTS:PDRDY) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Earnings and Valuation
This table compares Constellation Brands, Inc. Class A and PERNOD RICARD S/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Constellation Brands, Inc. Class A||$8.33 billion||4.93||$2.32 billion||$8.72||24.60|
|PERNOD RICARD S/ADR||$10.72 billion||3.98||$1.91 billion||$1.36||23.67|
Institutional and Insider Ownership
73.5% of Constellation Brands, Inc. Class A shares are held by institutional investors. Comparatively, 0.1% of PERNOD RICARD S/ADR shares are held by institutional investors. 15.8% of Constellation Brands, Inc. Class A shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Constellation Brands, Inc. Class A and PERNOD RICARD S/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Constellation Brands, Inc. Class A||31.51%||19.81%||8.24%|
|PERNOD RICARD S/ADR||N/A||N/A||N/A|
This is a summary of recent ratings and recommmendations for Constellation Brands, Inc. Class A and PERNOD RICARD S/ADR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Constellation Brands, Inc. Class A||2||5||17||0||2.63|
|PERNOD RICARD S/ADR||0||1||1||0||2.50|
Constellation Brands, Inc. Class A presently has a consensus price target of $242.52, indicating a potential upside of 13.06%. Given Constellation Brands, Inc. Class A’s stronger consensus rating and higher probable upside, equities analysts plainly believe Constellation Brands, Inc. Class A is more favorable than PERNOD RICARD S/ADR.
Constellation Brands, Inc. Class A pays an annual dividend of $0.93 per share and has a dividend yield of 0.4%. PERNOD RICARD S/ADR pays an annual dividend of $0.33 per share and has a dividend yield of 1.0%. Constellation Brands, Inc. Class A pays out 10.7% of its earnings in the form of a dividend. PERNOD RICARD S/ADR pays out 24.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Constellation Brands, Inc. Class A has increased its dividend for 2 consecutive years.
Volatility & Risk
Constellation Brands, Inc. Class A has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500. Comparatively, PERNOD RICARD S/ADR has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.
Constellation Brands, Inc. Class A beats PERNOD RICARD S/ADR on 14 of the 17 factors compared between the two stocks.
About Constellation Brands, Inc. Class A
Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands. The company offers wine under the 7 Moons, Black Box, Clos du Bois, Estancia, Mount Veeder, The Dreaming Tree, Franciscan Estate, Nobilo, The Prisoner, Kim Crawford, Ravage, The Velvet Devil, Kung Fu Girl, Mark West, Meiomi, Robert Mondavi, Ruffino, and Simi brands, as well as Schrader Cellars and Charles Smith brands; and spirits under the Casa Noble, High West, SVEDKA Vodka, Black Velvet Canadian Whisky, Casa Noble Tequila, and High West Whiskey brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. The company was founded in 1945 and is headquartered in Victor, New York.
About PERNOD RICARD S/ADR
Pernod Ricard SA produces and sells wines and spirits in Europe, the Americas, Asia, and internationally. The company offers liqueurs, sparkling wines, brandy, tequila, rum, vodka, bitters, gin, cognac, anise-based spirits, wine-based aperitifs, champagne, whisky, and ouzo. Its brand portfolio includes Absolut Vodka and Chivas Regal; Ballantine's, Beefeater, Jameson, Kahlúa, Malibu, Ricard, and Havana Club; Martell Cognac, G.H.Mumm, The Glenlivet, Perrier-Jouët, and Royal Salute; and Brancott Estate, Graffigna, Campo Viejo, Jacob's Creek, and Kenwood. The company also markets its products under local brands, including Pastis 51, 100 Pipers, ArArAt, Becherovka, Blenders Pride, Clan Campbell, Imperial, Seagram's Imperial Blue, Olmeca, Passport Scotch, Amaro Ramazzotti, Ruavieja, Royal Stag, Seagram's Gin, Something Special, Suze, Wiser's, and Wyborowa. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.
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