Critical Review: MGP Ingredients (NASDAQ:MGPI) and Campari Group (OTCMKTS:DVDCF)

MGP Ingredients (NASDAQ:MGPI) and Campari Group (OTCMKTS:DVDCF) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Risk and Volatility

MGP Ingredients has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Campari Group has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares MGP Ingredients and Campari Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGP Ingredients	$536.38 million	0.78	-$107.81 million	($11.14)	-1.77
Campari Group	$3.45 billion	2.38	$391.80 million	N/A	N/A

Campari Group has higher revenue and earnings than MGP Ingredients.

Insider & Institutional Ownership

77.1% of MGP Ingredients shares are held by institutional investors. 31.7% of MGP Ingredients shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares MGP Ingredients and Campari Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGP Ingredients	-45.70%	7.48%	4.44%
Campari Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for MGP Ingredients and Campari Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGP Ingredients	1	2	3	0	2.33
Campari Group	0	3	0	1	2.50

MGP Ingredients currently has a consensus target price of $27.75, indicating a potential upside of 40.86%. Given MGP Ingredients’ higher probable upside, research analysts plainly believe MGP Ingredients is more favorable than Campari Group.

Summary

Campari Group beats MGP Ingredients on 7 of the 13 factors compared between the two stocks.

About MGP Ingredients

MGP Ingredients, Inc., together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions. The Distillery Solutions segment provides food grade alcohol for beverage applications that include bourbon, rye, whiskeys, as well as grain neutral spirits, include vodka and gin; and food-grade industrial alcohol, which is used as an ingredient in food products, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also offers distillery co-products, such as dried distillers’ grain, fuel-grade alcohol for blending with gasoline, and corn oil; and provides warehouse services, including barrel put away, barrel storage, and barrel retrieval services, as well as blending services. The Branded Spirits segment provides premium plus, ultra-premium, super premium, premium, mid, and value branded distilled spirits, as well as private label products. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym, Resistant Starch series, and FiberRite RW Resistant Starch names; specialty wheat proteins for food applications under the Arise and Proterra names; gluten-free textured pea proteins; commodity wheat starch for food and non-food applications; and commodity wheat proteins. It sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries. The company was founded in 1941 and is based in Atchison, Kansas.

About Campari Group

Davide Campari-Milano N.V., together with its subsidiaries, markets and distributes alcoholic and non-alcoholic beverages in the Americas, the Middle East, Africa, Europe, and the Asia-Pacific. It offers a range of spirits categories, including aperitif, vodka, liqueurs, whisky, tequila, rum, Sparkling wine, mezcal, champagne, gin, and cognac, as well as ready to drink and non-alcoholic aperitif under the Aperol, Campari, SKYY, Wild Turkey, Grand Marnier, Jamaican Rums, Espolòn, Sparkling Wine&Vermouth, Crodino, The GlenGrant, Magnum Tonic Wine, Montelobos, Ancho Reyes, Lallier, Forty Creek, X-Rated, and other brands. Davide Campari-Milano N.V. was founded in 1860 and is headquartered in Sesto San Giovanni, Italy. Davide Campari-Milano N.V. is a subsidiary of Lagfin S.C.A.