Head-To-Head Survey: Constellation Brands (NYSE:STZ) versus National Beverage (NASDAQ:FIZZ)

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

Volatility & Risk

National Beverage has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Earnings & Valuation

This table compares National Beverage and Constellation Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Beverage	$1.18 billion	2.42	$183.65 million	$1.96	15.58
Constellation Brands	$9.06 billion	2.29	$1.69 billion	$10.48	11.59

Constellation Brands has higher revenue and earnings than National Beverage. Constellation Brands is trading at a lower price-to-earnings ratio than National Beverage, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares National Beverage and Constellation Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Beverage	15.56%	32.20%	23.46%
Constellation Brands	18.87%	25.58%	9.61%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for National Beverage and Constellation Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Beverage	2	0	0	0	1.00
Constellation Brands	1	9	11	0	2.48

National Beverage presently has a consensus price target of $32.00, indicating a potential upside of 4.78%. Constellation Brands has a consensus price target of $170.00, indicating a potential upside of 39.92%. Given Constellation Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Constellation Brands is more favorable than National Beverage.

Insider & Institutional Ownership

24.0% of National Beverage shares are held by institutional investors. Comparatively, 77.3% of Constellation Brands shares are held by institutional investors. 74.7% of National Beverage shares are held by insiders. Comparatively, 12.2% of Constellation Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Constellation Brands beats National Beverage on 9 of the 14 factors compared between the two stocks.

About National Beverage

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada. The company's Power+ brand portfolio offers sparkling water products under the LaCroix, LaCroix Cúrate, and LaCroix NiCola; non-carbonated flavored water under the Clear Fruit; energy drink and shots under the Rip It; juice and juice-based products under Everfresh, Everfresh Premier Varietals, and Mr. Pure; and carbonated soft drinks under Shasta and Faygo brands. It serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. National Beverage Corp. was incorporated in 1985 and is headquartered in Fort Lauderdale, Florida.

About Constellation Brands

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.