Innovation Beverage Group (NASDAQ:IBG) & Constellation Brands (NYSE:STZ) Financial Comparison

Constellation Brands (NYSE:STZ) and Innovation Beverage Group (NASDAQ:IBG) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Constellation Brands and Innovation Beverage Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellation Brands	17.29%	26.18%	9.51%
Innovation Beverage Group	N/A	N/A	N/A

Valuation & Earnings

This table compares Constellation Brands and Innovation Beverage Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Brands	$9.76 billion	2.55	$1.69 billion	$9.59	15.04
Innovation Beverage Group	$2.93 million	0.38	-$2.57 million	N/A	N/A

Constellation Brands has higher revenue and earnings than Innovation Beverage Group.

Institutional & Insider Ownership

77.3% of Constellation Brands shares are held by institutional investors. 12.2% of Constellation Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Constellation Brands and Innovation Beverage Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	2	8	11	1	2.50
Innovation Beverage Group	0	0	0	0	0.00

Constellation Brands presently has a consensus target price of $173.84, indicating a potential upside of 20.50%. Given Constellation Brands’ stronger consensus rating and higher probable upside, equities analysts clearly believe Constellation Brands is more favorable than Innovation Beverage Group.

Risk & Volatility

Constellation Brands has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Innovation Beverage Group has a beta of 3.43, meaning that its stock price is 243% more volatile than the S&P 500.

Summary

Constellation Brands beats Innovation Beverage Group on 12 of the 13 factors compared between the two stocks.

About Constellation Brands

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

About Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.