Comparing Monster Beverage (MNST) & Its Rivals

Monster Beverage (NASDAQ:MNST) is one of 137 public companies in the “Beverages” industry, but how does it weigh in compared to its peers? We will compare Monster Beverage to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, institutional ownership and valuation.

Profitability

This table compares Monster Beverage and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monster Beverage	23.08%	26.02%	21.21%
Monster Beverage Competitors	-8.60%	-34.42%	0.16%

Risk & Volatility

Monster Beverage has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Monster Beverage’s peers have a beta of -0.23, suggesting that their average stock price is 123% less volatile than the S&P 500.

Valuation & Earnings

This table compares Monster Beverage and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Monster Beverage	$8.29 billion	$1.91 billion	43.69
Monster Beverage Competitors	$8.49 billion	$869.16 million	9.42

Monster Beverage’s peers have higher revenue, but lower earnings than Monster Beverage. Monster Beverage is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations for Monster Beverage and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monster Beverage	0	8	15	1	2.71
Monster Beverage Competitors	1282	4325	5769	230	2.43

Monster Beverage currently has a consensus target price of $71.86, suggesting a potential upside of 52.32%. As a group, “Beverages” companies have a potential upside of 7.57%. Given Monster Beverage’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Monster Beverage is more favorable than its peers.

Insider & Institutional Ownership

72.4% of Monster Beverage shares are owned by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are owned by institutional investors. 8.1% of Monster Beverage shares are owned by insiders. Comparatively, 19.4% of shares of all “Beverages” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Monster Beverage beats its peers on 11 of the 13 factors compared.

Monster Beverage Company Profile

Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, Alcohol Brands, and Other. It offers carbonated non-carbonated energy drinks, ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks and single-serve still waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages. The company sells its products to full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, food service customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Muscle Monster, Espresso Monster, Monster Tour Water, Fury, Monster MAXX, Caffe Monster, Monster Hydro, Monster HydroSport Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, Reign Storm, Bang Energy, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, and Fury brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.