Head to Head Review: Constellation Brands (STZ) & Willamette Valley Vineyards (NASDAQ:WVVI)

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Constellation Brands (NYSE:STZ) and Willamette Valley Vineyards (NASDAQ:WVVI) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Earnings and Valuation

This table compares Constellation Brands and Willamette Valley Vineyards’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Constellation Brands $8.33 billion 3.64 $2.32 billion $8.72 18.34
Willamette Valley Vineyards $20.85 million 1.69 $2.99 million N/A N/A

Constellation Brands has higher revenue and earnings than Willamette Valley Vineyards.

Dividends

Constellation Brands pays an annual dividend of $0.93 per share and has a dividend yield of 0.6%. Willamette Valley Vineyards does not pay a dividend. Constellation Brands pays out 10.7% of its earnings in the form of a dividend. Constellation Brands has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Constellation Brands and Willamette Valley Vineyards, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Constellation Brands 0 7 16 1 2.75
Willamette Valley Vineyards 0 0 0 0 N/A

Constellation Brands currently has a consensus target price of $233.67, indicating a potential upside of 46.11%. Given Constellation Brands’ higher probable upside, equities analysts plainly believe Constellation Brands is more favorable than Willamette Valley Vineyards.

Profitability

This table compares Constellation Brands and Willamette Valley Vineyards’ 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%
Willamette Valley Vineyards 14.88% 11.63% 5.46%

Insider and Institutional Ownership

72.6% of Constellation Brands shares are owned by institutional investors. Comparatively, 9.3% of Willamette Valley Vineyards shares are owned by institutional investors. 15.8% of Constellation Brands shares are owned by insiders. Comparatively, 11.1% of Willamette Valley Vineyards shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Constellation Brands has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Willamette Valley Vineyards has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Summary

Constellation Brands beats Willamette Valley Vineyards on 14 of the 16 factors compared between the two stocks.

About Constellation Brands

Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands. The company offers wine under the 7 Moons, Black Box, Clos du Bois, Estancia, Mount Veeder, The Dreaming Tree, Franciscan Estate, Nobilo, The Prisoner, Kim Crawford, Ravage, The Velvet Devil, Kung Fu Girl, Mark West, Meiomi, Robert Mondavi, Ruffino, and Simi brands, as well as Schrader Cellars and Charles Smith brands; and spirits under the Casa Noble, High West, SVEDKA Vodka, Black Velvet Canadian Whisky, Casa Noble Tequila, and High West Whiskey brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. The company was founded in 1945 and is headquartered in Victor, New York.

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.

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