Constellation Brands (STZ.B) & Dr Pepper Snapple Group (DPS) Head-To-Head Comparison

Constellation Brands (NYSE:STZ.B) and Dr Pepper Snapple Group (NYSE:DPS) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a summary of current recommendations for Constellation Brands and Dr Pepper Snapple Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Constellation Brands 0 0 0 0 N/A
Dr Pepper Snapple Group 0 9 5 0 2.36

Dr Pepper Snapple Group has a consensus target price of $123.09, suggesting a potential downside of 0.46%. Given Dr Pepper Snapple Group’s higher probable upside, analysts plainly believe Dr Pepper Snapple Group is more favorable than Constellation Brands.

Profitability

This table compares Constellation Brands and Dr Pepper Snapple Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Constellation Brands 38.18% 18.63% 8.09%
Dr Pepper Snapple Group N/A N/A N/A

Insider & Institutional Ownership

0.1% of Constellation Brands shares are held by institutional investors. Comparatively, 92.7% of Dr Pepper Snapple Group shares are held by institutional investors. 96.8% of Constellation Brands shares are held by insiders. Comparatively, 0.6% of Dr Pepper Snapple Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Constellation Brands pays an annual dividend of $2.68 per share and has a dividend yield of 1.5%. Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 1.9%. Dr Pepper Snapple Group has increased its dividend for 8 consecutive years. Dr Pepper Snapple Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Constellation Brands and Dr Pepper Snapple Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Constellation Brands $8.33 billion 4.14 $2.32 billion N/A N/A
Dr Pepper Snapple Group N/A N/A N/A N/A N/A

Constellation Brands has higher revenue and earnings than Dr Pepper Snapple Group.

About Constellation Brands

Constellation Brands, Inc. is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States. It sells a number of brands in the import and craft beer categories, including Corona Extra, Corona Light, Modelo Especial, Ballast Point and others. It is a producer and marketer of wine, and sells a number of wine brands across various categories, including table wine, sparkling wine and dessert wine, and across all price points, such as popular, premium and luxury categories. Some of its wine and spirits brands sold in the United States, which comprise its U.S. Focus Brands (Focus Brands) include Meiomi, Robert Mondavi, Wild Horse and others.

About Dr Pepper Snapple Group

Dr Pepper Snapple Group, Inc. manufactures and distributes non-alcoholic beverages in the United States, Mexico and the Caribbean, and Canada. The company operates through three segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages. It offers flavored carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, mineral and coconut water, and mixers, as well as manufactures and sells Mott's apple sauces. The company sells its flavored CSD products primarily under the Dr Pepper, Canada Dry, Peñafiel, Squirt, 7UP, Crush, A&W, Sunkist soda, Schweppes, RC Cola, Big Red, Vernors, Venom, IBC, Diet Rite, and Sun Drop; and NCB products primarily under the Snapple, Hawaiian Punch, Mott's, FIJI, Clamato, Bai, Yoo-Hoo, Deja Blue, ReaLemon, AriZona tea, Vita Coco, BODYARMOR, Mr & Mrs T mixers, Nantucket Nectars, Garden Cocktail, Mistic, and Rose's brand names. It serves bottlers and distributors, and retailers. Dr Pepper Snapple Group, Inc. was incorporated in 2007 and is headquartered in Plano, Texas.

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