Reviewing Willamette Valley Vineyards (WVVI) & PepsiCo (PEP)

Willamette Valley Vineyards (NASDAQ:WVVI) and PepsiCo (NASDAQ:PEP) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Willamette Valley Vineyards and PepsiCo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Willamette Valley Vineyards 14.88% 11.63% 5.46%
PepsiCo 7.66% 73.27% 9.97%

Analyst Recommendations

This is a breakdown of recent ratings for Willamette Valley Vineyards and PepsiCo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Willamette Valley Vineyards 0 0 0 0 N/A
PepsiCo 1 12 5 0 2.22

PepsiCo has a consensus target price of $117.44, indicating a potential upside of 2.02%. Given PepsiCo’s higher probable upside, analysts plainly believe PepsiCo is more favorable than Willamette Valley Vineyards.

Earnings & Valuation

This table compares Willamette Valley Vineyards and PepsiCo’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Willamette Valley Vineyards $20.85 million 1.75 $2.99 million N/A N/A
PepsiCo $63.53 billion 2.56 $4.86 billion $5.23 22.06

PepsiCo has higher revenue and earnings than Willamette Valley Vineyards.

Dividends

PepsiCo pays an annual dividend of $3.71 per share and has a dividend yield of 3.2%. Willamette Valley Vineyards does not pay a dividend. PepsiCo pays out 70.9% of its earnings in the form of a dividend. PepsiCo has increased its dividend for 45 consecutive years.

Volatility and Risk

Willamette Valley Vineyards has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, PepsiCo has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

9.4% of Willamette Valley Vineyards shares are owned by institutional investors. Comparatively, 70.3% of PepsiCo shares are owned by institutional investors. 11.1% of Willamette Valley Vineyards shares are owned by company insiders. Comparatively, 0.3% of PepsiCo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

PepsiCo beats Willamette Valley Vineyards on 12 of the 15 factors compared between the two stocks.

About Willamette Valley Vineyards

Willamette Valley Vineyards, Inc. produces and sells wine in the United States and internationally. The company offers Pinot Noir, Chardonnay, Pinot Gris, Pinot Blanc, Methode Champenoise Brut, Rose, and Riesling branded wines under the Willamette Valley Vineyards and Elton labels; Semi-Sparkling Muscat branded wine under the Tualatin Estate Vineyards label; Syrah, Merlot, Cabernet Sauvignon, Grenache, Cabernet Franc, The Griffin, and Viognier branded wines under the Griffin Creek label; and Oregon Blossom branded wine under the Oregon Cellars label. It owns and leases approximately 913 acres of land. The company markets and sells its wine products directly through sales at the winery; and mailing lists, as well as through distributors and wine brokers. Willamette Valley Vineyards, Inc. was founded in 1983 and is headquartered in Turner, Oregon.

About PepsiCo

PepsiCo, Inc. operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips; Doritos, Tostitos, and Santitas tortilla chips; and Cheetos snacks, branded dips, and Fritos corn chips. The company's Quaker Foods North America segment provides cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes under the brands Quaker, Aunt Jemima, Cap'n crunch, life, Quaker Chewy, and Rice-A-Roni. Its North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under the Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Mist Twst, Mountain Dew, Pepsi, Propel, and Tropicana brands; and ready-to-drink tea, coffee, and juices. The company's Latin America segment provides snack foods under the Cheetos, Doritos, Emperador, Lay's, Marias Gamesa, Rosquinhas Mabel, Ruffles, Sabritas, Saladitas, and Tostitos; cereals and snacks under the Quaker brand; and beverage concentrates, fountain syrups, and finished goods under the 7UP, Diet Pepsi, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, and Toddy brands. Its Europe Sub-Saharan Africa segment offers snack food; cereals and snacks; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea products; and dairy products under the Agusha, Chudo, and Domik v Derevne brand names. The company's Asia, Middle East and North Africa segment provides snack foods under the Cheetos, Chipsy, Crunchy, Doritos, Kurkure, and Lay's brands; cereals and snacks under the Quaker brand; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea products. The company was founded in 1898 and is headquartered in Purchase, New York.

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