Critical Review: Celsius (NASDAQ:CELH) and Innovation Beverage Group (NASDAQ:IBG)

Celsius (NASDAQ:CELH) and Innovation Beverage Group (NASDAQ:IBG) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Risk and Volatility

Celsius has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Innovation Beverage Group has a beta of 3.15, indicating that its share price is 215% more volatile than the S&P 500.

Valuation & Earnings

This table compares Celsius and Innovation Beverage Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celsius	$2.52 billion	2.86	$108.00 million	$0.24	118.62
Innovation Beverage Group	$2.77 million	0.34	-$6.19 million	($0.42)	-2.07

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

Profitability

This table compares Celsius and Innovation Beverage Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celsius	4.24%	36.52%	8.53%
Innovation Beverage Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Celsius and Innovation Beverage Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celsius	1	6	14	0	2.62
Innovation Beverage Group	1	0	0	0	1.00

Celsius currently has a consensus target price of $41.76, indicating a potential upside of 46.70%. Given Celsius’ stronger consensus rating and higher probable upside, equities analysts plainly believe Celsius is more favorable than Innovation Beverage Group.

Insider & Institutional Ownership

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

Summary

Celsius beats Innovation Beverage Group on 13 of the 14 factors compared between the two stocks.

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.

About Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.