Critical Survey: Truett-Hurst (THST) vs. Constellation Brands (STZ)
Truett-Hurst (NASDAQ:THST) and Constellation Brands (NYSE:STZ) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Constellation Brands pays an annual dividend of $2.96 per share and has a dividend yield of 1.5%. Truett-Hurst does not pay a dividend. Constellation Brands pays out 33.9% of its earnings in the form of a dividend. Constellation Brands has increased its dividend for 2 consecutive years.
This table compares Truett-Hurst and Constellation Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
39.7% of Truett-Hurst shares are held by institutional investors. Comparatively, 73.9% of Constellation Brands shares are held by institutional investors. 17.1% of Truett-Hurst shares are held by insiders. Comparatively, 15.8% of Constellation Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Truett-Hurst has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.
Valuation and Earnings
This table compares Truett-Hurst and Constellation Brands’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Constellation Brands||$8.33 billion||4.62||$2.32 billion||$8.72||23.29|
Constellation Brands has higher revenue and earnings than Truett-Hurst.
This is a breakdown of recent recommendations for Truett-Hurst and Constellation Brands, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Constellation Brands has a consensus price target of $247.29, indicating a potential upside of 21.74%. Given Constellation Brands’ higher possible upside, analysts plainly believe Constellation Brands is more favorable than Truett-Hurst.
Constellation Brands beats Truett-Hurst on 11 of the 14 factors compared between the two stocks.
Truett-Hurst Company Profile
Truett-Hurst, Inc., together with its subsidiary, H.D.D. LLC, produces, markets, and sells wines primarily in the United States. The company operates through Wholesale and Direct to Consumer segments. It produces wine from a range of varietals, including the Pinot Noir, Chardonnay, Sauvignon Blanc, Zinfandel, Petite Sirah, Merlot, Cabernet Sauvignon, and other red blends. The company offers its products primarily under the VML, Healdsburg Ranches, Colby Red, Bradford Mountain, and Dearly Beloved brands directly through its tasting rooms, wine clubs, and winery Websites. Truett-Hurst, Inc. was founded in 2007 and is headquartered in Healdsburg, California.
Constellation Brands Company Profile
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.
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