Head-To-Head Comparison: Molson Coors Beverage (NYSE:TAP) versus Constellation Brands (NYSE:STZ)

Constellation Brands (NYSE:STZ) and Molson Coors Beverage (NYSE:TAP) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Constellation Brands	-4.11%	31.41%	10.81%
Molson Coors Beverage	7.81%	8.61%	4.39%

Dividends

Constellation Brands pays an annual dividend of $4.08 per share and has a dividend yield of 2.9%. Molson Coors Beverage pays an annual dividend of $1.88 per share and has a dividend yield of 3.9%. Constellation Brands pays out -170.7% of its earnings in the form of a dividend. Molson Coors Beverage pays out 37.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Constellation Brands has increased its dividend for 5 consecutive years and Molson Coors Beverage has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Constellation Brands and Molson Coors Beverage”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Brands	$10.96 billion	2.24	-$81.40 million	($2.39)	-58.38
Molson Coors Beverage	$13.73 billion	0.70	$1.12 billion	$5.07	9.54

Molson Coors Beverage has higher revenue and earnings than Constellation Brands. Constellation Brands is trading at a lower price-to-earnings ratio than Molson Coors Beverage, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Constellation Brands has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Molson Coors Beverage has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Institutional & Insider Ownership

77.3% of Constellation Brands shares are owned by institutional investors. Comparatively, 78.5% of Molson Coors Beverage shares are owned by institutional investors. 12.5% of Constellation Brands shares are owned by company insiders. Comparatively, 2.7% of Molson Coors Beverage shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Constellation Brands and Molson Coors Beverage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	4	9	13	1	2.41
Molson Coors Beverage	1	9	6	0	2.31

Constellation Brands presently has a consensus price target of $192.28, suggesting a potential upside of 37.82%. Molson Coors Beverage has a consensus price target of $58.18, suggesting a potential upside of 20.31%. Given Constellation Brands’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Constellation Brands is more favorable than Molson Coors Beverage.

Summary

Constellation Brands beats Molson Coors Beverage on 10 of the 18 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 Molson Coors Beverage

Molson Coors Beverage Company manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers flavored malt beverages including hard seltzers, craft, spirits and energy, and ready to drink beverages. It provides its products under Aspall Cider, Blue Moon, Coors Original, Five Trail, Hop Valley brands, Leinenkugel’s, Madri, Miller Genuine Draft, Molson Ultra, Sharp’s, Staropramen, and Vizzy Hard Seltzer above premier brands; Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands; and Branik, Icehouse, Keystone, Miller High Life, Milwaukee’s Best, and Steel Reserve under the economy brands. The company was formerly known as Molson Coors Brewing Company and changed its name to Molson Coors Beverage Company in January 2020. Molson Coors Beverage Company was founded in 1774 and is based in Golden, Colorado.