Contrasting Diageo (DEO) & New Age Beverages (NBEV)
Diageo (NYSE: DEO) and New Age Beverages (NASDAQ:NBEV) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.
This table compares Diageo and New Age Beverages’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Age Beverages||-0.41%||-0.58%||-0.41%|
This table compares Diageo and New Age Beverages’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diageo||$23.15 billion||3.57||$3.38 billion||N/A||N/A|
|New Age Beverages||$25.30 million||3.94||-$3.63 million||N/A||N/A|
Diageo has higher revenue and earnings than New Age Beverages.
Diageo pays an annual dividend of $3.43 per share and has a dividend yield of 2.6%. New Age Beverages does not pay a dividend. New Age Beverages has increased its dividend for 6 consecutive years.
This is a summary of current ratings and recommmendations for Diageo and New Age Beverages, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Age Beverages||0||0||3||0||3.00|
Diageo presently has a consensus price target of $154.00, suggesting a potential upside of 15.83%. New Age Beverages has a consensus price target of $6.58, suggesting a potential upside of 128.59%. Given New Age Beverages’ stronger consensus rating and higher probable upside, analysts clearly believe New Age Beverages is more favorable than Diageo.
Volatility & Risk
Diageo has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, New Age Beverages has a beta of 4.59, suggesting that its share price is 359% more volatile than the S&P 500.
Institutional and Insider Ownership
11.9% of Diageo shares are owned by institutional investors. Comparatively, 12.6% of New Age Beverages shares are owned by institutional investors. 48.6% of New Age Beverages shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Diageo PLC is an alcoholic beverage company. The Company operates in various categories, including spirits and beer. Its geographic segments include North America; Europe, Russia and Turkey; Africa; Latin America and Caribbean, and Asia Pacific. Its principal products includes Scotch whisky, Gin, Vodka, Rum, Beer, Irish Cream Liqueur, Wine, Raki, Tequila, Canadian Whisky, American Whiskey, Progressive Adult Beverages, Cachaca, Brandy and Ready to Drink. The Company’s brands includes Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray and Guinness. It manages its operations from various locations, including the United Kingdom; Ireland; Italy; Turkey; the United States; Canada; Brazil; Mexico; Australia; Singapore; India; Nigeria; South Africa; East Africa, and Africa Regional Markets. It also produces a range of ready to drink products mainly in the United Kingdom, Italy, South Africa, Australia, the United States and Canada.
About New Age Beverages
The New Age Beverage Corporation, formerly Bucha, Inc., is a healthy functional beverage company. The Company is the owner of XingTea, XingEnergy, Aspen Pure and the Bucha Live Kombucha brands. The Company’s bucha Live Kombucha is a gluten free, organic certified, sparkling kombucha tea and is distributed in health and grocery chains across North America. The Company offers its bucha Live Kombucha products in approximately 16-ounce bottle. The Company offers XingTea in approximately 13 flavors. Its product, XINGjuice, is a natural juice drink, made with cane sugar and real fruit juice. Its product, XingEnergy is a naturally flavored cane sugar product. The Company’s product, Aspen Pure, is bottled water packaged in approximately 24-ounce, half-liter and one-liter bottles. The Company offers products in approximately 46 states within the United States and in over 10 countries internationally across all channels through direct and store door distribution systems.
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