Diageo (NYSE:DEO) versus Zevia PBC (NYSE:ZVIA) Head-To-Head Analysis

Zevia PBC (NYSE:ZVIA) and Diageo (NYSE:DEO) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zevia PBC	$161.26 million	0.68	-$9.92 million	($0.13)	-10.96
Diageo	$19.64 billion	2.61	$1.74 billion	N/A	N/A

Diageo has higher revenue and earnings than Zevia PBC.

Analyst Ratings

This is a summary of current ratings and target prices for Zevia PBC and Diageo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zevia PBC	1	1	2	0	2.25
Diageo	1	5	6	0	2.42

Zevia PBC currently has a consensus price target of $4.50, indicating a potential upside of 215.79%. Diageo has a consensus price target of $106.25, indicating a potential upside of 15.28%. Given Zevia PBC’s higher possible upside, research analysts plainly believe Zevia PBC is more favorable than Diageo.

Insider and Institutional Ownership

53.2% of Zevia PBC shares are owned by institutional investors. Comparatively, 9.0% of Diageo shares are owned by institutional investors. 7.7% of Zevia PBC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Zevia PBC has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Zevia PBC and Diageo’s net margins, return on equity and return on assets.

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

Summary

Diageo beats Zevia PBC on 8 of the 12 factors compared between the two stocks.

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.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products. The company provides its products under the Johnnie Walker, Crown Royal, J&B, Buchanan’s, Smirnoff, Cîroc, Ketel One, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, Guinness, Shui Jing Fang, Yenì, McDowell’s, Don Papa, Aviation American, Seagram, Seagram’s 7 Crown, Zacapa, Black Dog, Black & White, Signature, Royal Challenge, Godawan, Antiquity, Gordon’s, Old Parr, Windsor, Bundaberg, Ypióca, Bulleit, and Bell’s brand names. It operates in the United States, the United Kingdom, Türkiye, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.