Crimson Wine Group (OTCMKTS:CWGL) and Diageo (NYSE:DEO) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Institutional & Insider Ownership
22.6% of Crimson Wine Group shares are owned by institutional investors. Comparatively, 11.3% of Diageo shares are owned by institutional investors. 21.6% of Crimson Wine Group shares are owned 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.
This table compares Crimson Wine Group and Diageo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crimson Wine Group||7.61%||2.45%||2.07%|
This is a summary of current ratings and target prices for Crimson Wine Group and Diageo, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crimson Wine Group||0||0||0||0||N/A|
Diageo has a consensus target price of $160.50, suggesting a potential upside of 12.77%. Given Diageo’s higher possible upside, analysts plainly believe Diageo is more favorable than Crimson Wine Group.
Valuation and Earnings
This table compares Crimson Wine Group and Diageo’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Crimson Wine Group||$63.22 million||3.17||$6.18 million||N/A||N/A|
|Diageo||$24.83 billion||3.57||$4.07 billion||$6.35||22.41|
Diageo has higher revenue and earnings than Crimson Wine Group.
Risk & Volatility
Crimson Wine Group has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
Diageo pays an annual dividend of $4.18 per share and has a dividend yield of 2.9%. Crimson Wine Group does not pay a dividend. Diageo pays out 65.8% of its earnings in the form of a dividend. Diageo has raised its dividend for 6 consecutive years.
Diageo beats Crimson Wine Group on 8 of the 15 factors compared between the two stocks.
Crimson Wine Group Company Profile
Crimson Wine Group, Ltd., through its subsidiaries, engages in the production and sale of ultra-premium and wines. It operates through two segments, Wholesale and Direct to Consumer. The company sells wines through independent wine and spirit distributors in the United States; and independent importers and brokers internationally. It exports its products to 35 countries. The company was formerly known as Leucadia Cellars, Ltd. and changed its name to Crimson Wine Group, Ltd. in November 2007. Crimson Wine Group, Ltd. was founded in 1991 and is headquartered in Napa, California. Crimson Wine Group, Ltd. was formerly a subsidiary of Leucadia National Corporation.
Diageo Company Profile
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Bundaberg, McDowell's No. 1, Black & White, Shui Jing Fang, Grand Old Parr, Ypióca, Lagavulin, Cîroc, Bulleit Bourbon, Ron Zacapa Centenario XO, The Singleton of Glen Ord, Casamigos, Talisker, Tanqueray, and Guinness. The company also provides adult beverages and non-alcoholic products. Diageo plc was founded in 1886 and is headquartered in London, the United Kingdom.
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