Head-To-Head Survey: Monster Beverage (NASDAQ:MNST) & Innovation Beverage Group (NASDAQ:IBG)

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

Valuation and Earnings

This table compares Monster Beverage and Innovation Beverage Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monster Beverage	$8.29 billion	10.73	$1.91 billion	$1.08	42.08
Innovation Beverage Group	$2.77 million	0.36	-$6.19 million	($0.42)	-2.20

Monster Beverage has higher revenue and earnings than Innovation Beverage Group. Innovation Beverage Group is trading at a lower price-to-earnings ratio than Monster Beverage, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

72.4% of Monster Beverage shares are held by institutional investors. 8.1% of Monster Beverage shares are held by insiders. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Monster Beverage	23.08%	26.02%	21.21%
Innovation Beverage Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for Monster Beverage and Innovation Beverage Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monster Beverage	0	8	15	1	2.71
Innovation Beverage Group	1	0	0	0	1.00

Monster Beverage presently has a consensus target price of $71.86, indicating a potential upside of 58.13%. Given Monster Beverage’s stronger consensus rating and higher probable upside, research analysts clearly believe Monster Beverage is more favorable than Innovation Beverage Group.

Volatility and Risk

Monster Beverage has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Innovation Beverage Group has a beta of 3.15, meaning that its stock price is 215% more volatile than the S&P 500.

Summary

Monster Beverage beats Innovation Beverage Group on 14 of the 15 factors compared between the two stocks.

About Monster Beverage

Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, Alcohol Brands, and Other. It offers carbonated non-carbonated energy drinks, ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks and single-serve still waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages. The company sells its products to full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, food service customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Muscle Monster, Espresso Monster, Monster Tour Water, Fury, Monster MAXX, Caffe Monster, Monster Hydro, Monster HydroSport Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, Reign Storm, Bang Energy, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, and Fury brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.

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.