MGP Ingredients (NASDAQ:MGPI) and Spirits Cap (OTCMKTS:CBEVD) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Earnings and Valuation
This table compares MGP Ingredients and Spirits Cap’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MGP Ingredients||$395.52 million||3.48||$40.35 million||$2.51||24.97|
Insider and Institutional Ownership
73.7% of MGP Ingredients shares are held by institutional investors. 24.1% of MGP Ingredients shares are held by insiders. Comparatively, 29.8% of Spirits Cap shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares MGP Ingredients and Spirits Cap’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for MGP Ingredients and Spirits Cap, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MGP Ingredients presently has a consensus target price of $60.00, suggesting a potential downside of 4.28%. Given MGP Ingredients’ higher probable upside, equities analysts clearly believe MGP Ingredients is more favorable than Spirits Cap.
Volatility and Risk
MGP Ingredients has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Spirits Cap has a beta of -0.79, meaning that its stock price is 179% less volatile than the S&P 500.
MGP Ingredients beats Spirits Cap on 7 of the 8 factors compared between the two stocks.
MGP Ingredients Company Profile
MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. It operates through two segments, Distillery Products and Ingredient Solutions. The Distillery Products segment provides food grade alcohol for beverage applications that include bourbon and rye whiskeys, as well as grain neutral spirits, including vodka and gin; and food grade industrial alcohol, which is used as an ingredient in foods, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also provides fuel grade alcohol for blending with gasoline; distillers feed and related co-products, such as distillers feed and corn oil; and warehouse services, including barrel put away, storage, and retrieval services, as well as blending services. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym Resistant Starch, FiberRite RW Resistant Starch, Pregel Instant Starch, and Midsol Cook-up Starch names; specialty wheat proteins for food applications under the Arise and Proterra names; gluten free textured pea proteins; commodity wheat starch for food and non-food applications; and commodity wheat proteins. The company sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries primarily in the United States, Japan, Thailand, Mexico, and Canada. MGP Ingredients, Inc. was founded in 1941 and is headquartered in Atchison, Kansas.
Spirits Cap Company Profile
Spirits Cap Corp. does not have significant operations. The company was formerly known as Capital Beverage Corporation. The company was incorporated in 1995 and is based in Dover, Delaware.
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