Zevia PBC (NYSE:ZVIA) and Diageo (OTCMKTS:DGEAF) Financial Comparison

Diageo (OTCMKTS:DGEAF) and Zevia PBC (NYSE:ZVIA) 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 Diageo and Zevia PBC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Zevia PBC	-5.34%	-16.92%	-9.56%

Institutional & Insider Ownership

33.3% of Diageo shares are held by institutional investors. Comparatively, 53.2% of Zevia PBC shares are held by institutional investors. 7.7% of Zevia PBC 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.

Valuation and Earnings

This table compares Diageo and Zevia PBC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diageo	N/A	N/A	N/A	$0.78	30.78
Zevia PBC	$161.26 million	0.62	-$9.92 million	($0.13)	-9.94

Diageo has higher earnings, but lower revenue than Zevia PBC. Zevia PBC is trading at a lower price-to-earnings ratio than Diageo, 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 Diageo and Zevia PBC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	0	0	0	0	0.00
Zevia PBC	1	1	2	0	2.25

Zevia PBC has a consensus target price of $4.50, indicating a potential upside of 248.30%. Given Zevia PBC’s stronger consensus rating and higher probable upside, analysts plainly believe Zevia PBC is more favorable than Diageo.

Summary

Zevia PBC beats Diageo on 6 of the 11 factors compared between the two stocks.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. It offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavoured malt beverages. The company also provides Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as ready to drink and non-alcoholic products. It provides its products primarily under the Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal, Don Julio, Cîroc, Buchanan's, Casamigos, J&B, and Ketel One brands. The company operates in the United States, the United Kingdom, Turkey, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. Diageo plc was incorporated in 1886 and is headquartered in London, the United Kingdom.

About Zevia PBC

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.