Financial Comparison: Crimson Wine Group (OTCMKTS:CWGL) versus Compania Cervecerias Unidas (NYSE:CCU)

Compania Cervecerias Unidas (NYSE:CCU) and Crimson Wine Group (OTCMKTS:CWGL) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Institutional & Insider Ownership

24.1% of Compania Cervecerias Unidas shares are held by institutional investors. Comparatively, 17.0% of Crimson Wine Group shares are held by institutional investors. 8.4% of Compania Cervecerias Unidas shares are held by company insiders. Comparatively, 34.6% of Crimson Wine Group shares are held 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.

Profitability

This table compares Compania Cervecerias Unidas and Crimson Wine Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compania Cervecerias Unidas	4.48%	8.18%	3.58%
Crimson Wine Group	1.76%	0.64%	0.56%

Volatility and Risk

Compania Cervecerias Unidas has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Crimson Wine Group has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Compania Cervecerias Unidas and Crimson Wine Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compania Cervecerias Unidas	2	2	0	0	1.50
Crimson Wine Group	0	0	0	0	0.00

Compania Cervecerias Unidas presently has a consensus price target of $10.00, suggesting a potential downside of 21.01%. Given Compania Cervecerias Unidas’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Compania Cervecerias Unidas is more favorable than Crimson Wine Group.

Earnings & Valuation

This table compares Compania Cervecerias Unidas and Crimson Wine Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compania Cervecerias Unidas	$3.08 billion	0.76	$177.04 million	$0.77	16.44
Crimson Wine Group	$72.99 million	1.39	$850,000.00	$0.05	98.60

Compania Cervecerias Unidas has higher revenue and earnings than Crimson Wine Group. Compania Cervecerias Unidas is trading at a lower price-to-earnings ratio than Crimson Wine Group, indicating that it is currently the more affordable of the two stocks.

Summary

Compania Cervecerias Unidas beats Crimson Wine Group on 9 of the 13 factors compared between the two stocks.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

About Crimson Wine Group

Crimson Wine Group, Ltd., through its subsidiaries, produces and sells wines in the United States and internationally. It operates in two segments, Wholesale and Direct to Consumer. The company also sells bulk wines and grapes; and other non-wine products, such as merchandise, as well as provides custom winemaking services. The company sells its products under the Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards, Seghesio Family Vineyards, Double Canyon, Seven Hills Winery, and Malene Wines brand names. It offers wines to distributors, as well as directly to consumers through wine club memberships and direct phone calls, as well as its website, third-party websites, and other online sales. The company was formerly known as Leucadia Cellars, Ltd. and changed its name to Crimson Wine Group, Ltd. in November 2007. Crimson Wine Group, Ltd. was incorporated in 1991 and is headquartered in Napa, California.