Reviewing Constellation Brands (NYSE:STZ) & Arcadia Biosciences (NASDAQ:RKDA)

Arcadia Biosciences (NASDAQ:RKDA) and Constellation Brands (NYSE:STZ) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares Arcadia Biosciences and Constellation Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcadia Biosciences	-234.53%	-183.50%	-91.25%
Constellation Brands	18.87%	25.58%	9.61%

Institutional & Insider Ownership

17.7% of Arcadia Biosciences shares are held by institutional investors. Comparatively, 77.3% of Constellation Brands shares are held by institutional investors. 4.5% of Arcadia Biosciences shares are held by company insiders. Comparatively, 12.2% of Constellation Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Arcadia Biosciences and Constellation Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcadia Biosciences	$4.86 million	0.14	-$2.34 million	($4.56)	-0.06
Constellation Brands	$9.76 billion	1.97	$1.69 billion	$10.48	10.75

Constellation Brands has higher revenue and earnings than Arcadia Biosciences. Arcadia Biosciences is trading at a lower price-to-earnings ratio than Constellation Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Arcadia Biosciences and Constellation Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcadia Biosciences	1	0	0	0	1.00
Constellation Brands	2	9	12	0	2.43

Constellation Brands has a consensus target price of $159.33, indicating a potential upside of 41.36%. Given Constellation Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Constellation Brands is more favorable than Arcadia Biosciences.

Risk and Volatility

Arcadia Biosciences has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Summary

Constellation Brands beats Arcadia Biosciences on 13 of the 14 factors compared between the two stocks.

About Arcadia Biosciences

Arcadia Biosciences, Inc. produces and markets plant-based food and beverage products in the United States. The company develops crop improvements primarily in wheat to enhance farm economics by improving the performance of crops in the field, as well as their value as food ingredients. Its food, beverage, and body case products include GoodWheat, Zola coconut water, ProVault topical pain relief, and SoulSpring. The company was incorporated in 2002 and is headquartered in Dallas, Texas.

About Constellation Brands

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.