Celsius (NASDAQ:CELH) & Constellation Brands (NYSE:STZ) Critical Comparison

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

Insider & Institutional Ownership

77.3% of Constellation Brands shares are owned by institutional investors. Comparatively, 61.0% of Celsius shares are owned by institutional investors. 12.2% of Constellation Brands shares are owned by insiders. Comparatively, 2.3% of Celsius shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Constellation Brands has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Celsius has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Constellation Brands and Celsius, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	2	9	12	0	2.43
Celsius	2	5	14	0	2.57

Constellation Brands presently has a consensus target price of $161.90, indicating a potential upside of 39.14%. Celsius has a consensus target price of $43.38, indicating a potential upside of 48.65%. Given Celsius’ stronger consensus rating and higher probable upside, analysts plainly believe Celsius is more favorable than Constellation Brands.

Profitability

This table compares Constellation Brands and Celsius’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellation Brands	18.87%	25.58%	9.61%
Celsius	4.24%	36.52%	8.53%

Earnings and Valuation

This table compares Constellation Brands and Celsius”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Brands	$9.76 billion	2.04	$1.69 billion	$10.48	11.10
Celsius	$2.52 billion	2.94	$108.00 million	$0.24	121.58

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

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.