Financial Survey: Diageo (NYSE:DEO) versus Zevia PBC (NYSE:ZVIA)

Diageo (NYSE:DEO) and Zevia PBC (NYSE:ZVIA) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Diageo and Zevia PBC’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
Zevia PBC	-5.34%	-16.92%	-9.56%

Volatility and Risk

Diageo has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Zevia PBC has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Diageo and Zevia PBC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	1	5	6	0	2.42
Zevia PBC	1	1	2	0	2.25

Diageo currently has a consensus target price of $106.25, suggesting a potential upside of 15.28%. Zevia PBC has a consensus target price of $4.50, suggesting a potential upside of 215.79%. Given Zevia PBC’s higher probable upside, analysts clearly believe Zevia PBC is more favorable than Diageo.

Valuation and Earnings

This table compares Diageo and Zevia PBC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diageo	$19.64 billion	2.61	$1.74 billion	N/A	N/A
Zevia PBC	$161.26 million	0.68	-$9.92 million	($0.13)	-10.96

Diageo has higher revenue and earnings than Zevia PBC.

Insider and Institutional Ownership

9.0% of Diageo shares are owned by institutional investors. Comparatively, 53.2% of Zevia PBC shares are owned by institutional investors. 7.7% of Zevia PBC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Diageo beats Zevia PBC on 8 of the 12 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 Zevia PBC

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.