Comparing Constellation Brands (NYSE:STZ) and Willamette Valley Vineyards (NASDAQ:WVVI)

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

Analyst Ratings

This is a breakdown of recent ratings for Willamette Valley Vineyards and Constellation Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willamette Valley Vineyards	1	0	0	0	1.00
Constellation Brands	4	7	12	0	2.35

Constellation Brands has a consensus price target of $154.09, suggesting a potential upside of 7.39%. Given Constellation Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Constellation Brands is more favorable than Willamette Valley Vineyards.

Risk and Volatility

Willamette Valley Vineyards has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares Willamette Valley Vineyards and Constellation Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willamette Valley Vineyards	-5.93%	-10.31%	-2.11%
Constellation Brands	19.57%	24.75%	9.54%

Institutional & Insider Ownership

12.2% of Willamette Valley Vineyards shares are owned by institutional investors. Comparatively, 77.3% of Constellation Brands shares are owned by institutional investors. 9.1% of Willamette Valley Vineyards shares are owned by company insiders. Comparatively, 12.2% of Constellation Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Willamette Valley Vineyards and Constellation Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Willamette Valley Vineyards	$37.20 million	0.23	-$920,000.00	($0.92)	-1.85
Constellation Brands	$9.76 billion	2.49	$1.69 billion	$11.15	12.87

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

Summary

Constellation Brands beats Willamette Valley Vineyards on 14 of the 14 factors compared between the two stocks.

About Willamette Valley Vineyards

Willamette Valley Vineyards, Inc. is an Oregon-based wine producer founded in 1983 by Jim Bernau. The company focuses on producing premium wines from grapes grown in Oregon, with an emphasis on Pinot Noir, along with Chardonnay, Pinot Gris, Riesling and other varietals. The company owns and manages estate vineyards in Oregon’s Willamette Valley and sources grapes from additional vineyards in the state. Its products are sold under the Willamette Valley Vineyards brand and other labels, including wines associated with its estate and regional wine operations.

About Constellation Brands

Constellation Brands is a beverage alcohol company focused on beer, wine and spirits. Its beer portfolio includes Modelo Especial, Corona Extra and Pacifico, which it markets in the United States under its agreement with Grupo Modelo. The company also owns premium wine and spirits brands, including Robert Mondavi Winery and The Prisoner Wine Company. Its products reach consumers primarily in the United States, with operations and distribution extending to other markets. Founded in 1945 as Canandaigua Wine Company in New York, the business grew through brand development and acquisitions before adopting the Constellation Brands name.