Analyzing Innovation Beverage Group (NASDAQ:IBG) and Diageo (NYSE:DEO)

Diageo (NYSE:DEO) and Innovation Beverage Group (NASDAQ:IBG) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Diageo and Innovation Beverage Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	2	6	5	0	2.23
Innovation Beverage Group	0	0	0	0	0.00

Diageo presently has a consensus price target of $116.50, suggesting a potential upside of 38.20%. Given Diageo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Diageo is more favorable than Innovation Beverage Group.

Institutional & Insider Ownership

9.0% of Diageo shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Diageo has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Innovation Beverage Group has a beta of 3.79, suggesting that its share price is 279% more volatile than the S&P 500.

Profitability

This table compares Diageo and Innovation Beverage Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Innovation Beverage Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Diageo and Innovation Beverage Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diageo	$20.25 billion	2.32	$2.35 billion	N/A	N/A
Innovation Beverage Group	$2.93 million	0.29	-$2.57 million	N/A	N/A

Diageo has higher revenue and earnings than Innovation Beverage Group.

Summary

Diageo beats Innovation Beverage Group on 7 of the 8 factors compared between the two stocks.

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.

About Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.