Head to Head Comparison: Davide Campari-Milano (OTCMKTS:DVDCY) versus Molson Coors Beverage (NYSE:TAP)

Molson Coors Beverage (NYSE:TAP) and Davide Campari-Milano (OTCMKTS:DVDCY) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

78.5% of Molson Coors Beverage shares are held by institutional investors. 2.3% of Molson Coors Beverage shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Molson Coors Beverage has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Davide Campari-Milano has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Molson Coors Beverage and Davide Campari-Milano, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Molson Coors Beverage	4	11	4	0	2.00
Davide Campari-Milano	0	0	0	0	0.00

Molson Coors Beverage presently has a consensus target price of $44.18, indicating a potential upside of 8.19%. Given Molson Coors Beverage’s stronger consensus rating and higher possible upside, research analysts plainly believe Molson Coors Beverage is more favorable than Davide Campari-Milano.

Dividends

Molson Coors Beverage pays an annual dividend of $1.92 per share and has a dividend yield of 4.7%. Davide Campari-Milano pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Molson Coors Beverage pays out -16.6% of its earnings in the form of a dividend. Davide Campari-Milano pays out 15.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Molson Coors Beverage has raised its dividend for 4 consecutive years. Molson Coors Beverage is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Molson Coors Beverage and Davide Campari-Milano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Molson Coors Beverage	-17.83%	9.46%	4.25%
Davide Campari-Milano	N/A	N/A	N/A

Valuation and Earnings

This table compares Molson Coors Beverage and Davide Campari-Milano”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Molson Coors Beverage	$13.04 billion	0.59	-$2.14 billion	($11.54)	-3.54
Davide Campari-Milano	$2.06 billion	5.50	$345.41 million	$0.26	37.88

Davide Campari-Milano has lower revenue, but higher earnings than Molson Coors Beverage. Molson Coors Beverage is trading at a lower price-to-earnings ratio than Davide Campari-Milano, indicating that it is currently the more affordable of the two stocks.

Summary

Molson Coors Beverage beats Davide Campari-Milano on 11 of the 17 factors compared between the two stocks.

About Molson Coors Beverage

Molson Coors Beverage Company manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers flavored malt beverages including hard seltzers, craft, spirits and energy, and ready to drink beverages. It provides its products under Aspall Cider, Blue Moon, Coors Original, Five Trail, Hop Valley brands, Leinenkugel’s, Madri, Miller Genuine Draft, Molson Ultra, Sharp’s, Staropramen, and Vizzy Hard Seltzer above premier brands; Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands; and Branik, Icehouse, Keystone, Miller High Life, Milwaukee’s Best, and Steel Reserve under the economy brands. The company was formerly known as Molson Coors Brewing Company and changed its name to Molson Coors Beverage Company in January 2020. Molson Coors Beverage Company was founded in 1774 and is based in Golden, Colorado.

About Davide Campari-Milano

Davide Campari-Milano S.p.A., together with its subsidiaries, manufactures and trades in alcoholic and non-alcoholic beverages in the Americas, Europe, the Middle East, Africa, Europe, and the Asia-Pacific. Its product portfolio includes aperitifs, vodka, whisky, tequila, rum, gin, liqueurs, sparkling and still wines, and ready to drink products under approximately 50 brands. The company was founded in 1860 and is headquartered in Sesto San Giovanni, Italy. Davide Campari-Milano S.p.A. is a subsidiary of Alicros S.p.A.