Remy Cointreau (OTCMKTS:REMYY) vs. Diageo (NYSE:DEO) Financial Analysis

Diageo (NYSE:DEO) and Remy Cointreau (OTCMKTS:REMYY) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Diageo and Remy Cointreau”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diageo	$20.25 billion	2.53	$2.35 billion	N/A	N/A
Remy Cointreau	$1.06 billion	2.31	$130.21 million	N/A	N/A

Diageo has higher revenue and earnings than Remy Cointreau.

Volatility & Risk

Diageo has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Remy Cointreau has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

9.0% of Diageo shares are held by institutional investors. 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.

Analyst Recommendations

This is a summary of current ratings for Diageo and Remy Cointreau, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	3	3	5	0	2.18
Remy Cointreau	3	2	1	1	2.00

Diageo presently has a consensus target price of $116.50, suggesting a potential upside of 26.62%. Given Diageo’s stronger consensus rating and higher possible upside, analysts clearly believe Diageo is more favorable than Remy Cointreau.

Dividends

Diageo pays an annual dividend of $4.95 per share and has a dividend yield of 5.4%. Remy Cointreau pays an annual dividend of $0.10 per share and has a dividend yield of 2.2%.

Profitability

This table compares Diageo and Remy Cointreau’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Remy Cointreau	N/A	N/A	N/A

Summary

Diageo beats Remy Cointreau on 8 of the 10 factors compared between the two stocks.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products. The company provides its products under the Johnnie Walker, Crown Royal, J&B, Buchanan’s, Smirnoff, Cîroc, Ketel One, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, Guinness, Shui Jing Fang, Yenì, McDowell’s, Don Papa, Aviation American, Seagram, Seagram’s 7 Crown, Zacapa, Black Dog, Black & White, Signature, Royal Challenge, Godawan, Antiquity, Gordon’s, Old Parr, Windsor, Bundaberg, Ypióca, Bulleit, and Bell’s brand names. It operates in the United States, the United Kingdom, Türkiye, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.

About Remy Cointreau

Rémy Cointreau SA, together with its subsidiaries, engages in the production, sale, and distribution of liqueurs and spirits. It operates through Rémy Martin, Liqueurs & Spirits, and Partner Brands segments. The company offers cognacs, liqueurs, single malt whiskies, gins, rums, brandies, wines, and champagnes primarily under the Cointreau, Metaxa, St-Rémy, Mount Gay, Bruichladdich, The Botanist, Westland, Le Domaine des Hautes Glaces, Belle de Brillet, Telmont, Port Charlotte, Octomore, Rémy Martin, and LOUIS XIII brands. It operates in Europe, the Middle East, Africa, the Americas, Asia, Australia, and New Zealand. The company was founded in 1724 and is headquartered in Cognac, France.