Mendocino Brewing (OTCMKTS:MENB) & MGP Ingredients (NASDAQ:MGPI) Financial Analysis

Mendocino Brewing (OTCMKTS:MENB) and MGP Ingredients (NASDAQ:MGPI) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mendocino Brewing and MGP Ingredients, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mendocino Brewing	0	0	0	0	0.00
MGP Ingredients	0	1	4	0	2.80

MGP Ingredients has a consensus target price of $49.67, indicating a potential upside of 101.24%. Given MGP Ingredients’ stronger consensus rating and higher probable upside, analysts plainly believe MGP Ingredients is more favorable than Mendocino Brewing.

Earnings and Valuation

This table compares Mendocino Brewing and MGP Ingredients”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mendocino Brewing	N/A	N/A	N/A	N/A	N/A
MGP Ingredients	$703.62 million	0.75	$34.66 million	($0.31)	-79.61

MGP Ingredients has higher revenue and earnings than Mendocino Brewing.

Institutional and Insider Ownership

77.1% of MGP Ingredients shares are held by institutional investors. 82.4% of Mendocino Brewing shares are held by insiders. Comparatively, 34.4% of MGP Ingredients shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Mendocino Brewing and MGP Ingredients’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mendocino Brewing	N/A	N/A	N/A
MGP Ingredients	-1.08%	10.66%	6.49%

Summary

MGP Ingredients beats Mendocino Brewing on 7 of the 9 factors compared between the two stocks.

About Mendocino Brewing

Mendocino Brewing Company, Inc., together with its subsidiaries, engages in the brewing, production, and sale of beer and malt beverages in the United States, Canada, and Europe. It operates through two segments, the North American Territory and the Foreign Territory. The company produces and markets craft beers primarily under the Red Tail Ale, Blue Heron Pale Ale, Black Hawk Stout, Eye of the Hawk Select Ale, and White Hawk Original IPA. It also owns and operates brewpub and gift store in Ukiah, California; brews its products for various other brands on contract basis; and distributes alcoholic beverages, primarily under Kingfisher Premium Lager brand in the United Kingdom and Europe. The company sells its products through wholesale distributors to consumers at supermarkets, warehouse stores, liquor stores, taverns and bars, restaurants, and convenience stores in North America; Indian restaurants by restaurant trade distributors, as well as through supermarkets, liquor stores, and licensed shops and convenience stores in the European Union;; and through provincial liquor boards and independent distributors in Canada. Mendocino Brewing Company, Inc. was founded in 1982 and is based in Ukiah, California.

About MGP Ingredients

MGP Ingredients, Inc., together with its subsidiaries, engages in the production and supply of distilled spirits, branded spirits, and food ingredients in the United States and internationally. The company operates through three segments: Distillery Solutions; Branded Spirits; and Ingredient Solutions. The Distillery Solutions segment provides food grade alcohol for beverage applications that include bourbon, rye, whiskeys, as well as grain neutral spirits, include vodka and gin; and food-grade industrial alcohol, which is used as an ingredient in food products, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also offers distillery co-products, such as dried distillers’ grain, fuel-grade alcohol for blending with gasoline, and corn oil; and provides warehouse services, including barrel put away, barrel storage, and barrel retrieval services, as well as blending services. The Branded Spirits segment provides premium plus, ultra-premium, super premium, premium, mid, and value branded distilled spirits, as well as private label products. The Ingredient Solutions segment provides specialty wheat starches for food applications under the Fibersym, Resistant Starch series, and FiberRite RW Resistant Starch names; specialty wheat proteins for food applications under the Arise and Proterra names; gluten-free textured pea proteins; commodity wheat starch for food and non-food applications; and commodity wheat proteins. It sells its products directly or through distributors to manufacturers and processors of finished packaged goods or to bakeries. The company was founded in 1941 and is based in Atchison, Kansas.