Contrasting Tsingtao Brewery (OTCMKTS:TSGTY) & Diageo (NYSE:DEO)

Tsingtao Brewery (OTCMKTS:TSGTY) and Diageo (NYSE:DEO) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Tsingtao Brewery and Diageo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tsingtao Brewery	N/A	N/A	N/A
Diageo	N/A	N/A	N/A

Valuation & Earnings

This table compares Tsingtao Brewery and Diageo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tsingtao Brewery	$4.52 billion	1.87	$638.28 million	N/A	N/A
Diageo	$20.25 billion	2.21	$2.35 billion	N/A	N/A

Diageo has higher revenue and earnings than Tsingtao Brewery.

Dividends

Tsingtao Brewery pays an annual dividend of $1.34 per share and has a dividend yield of 4.3%. Diageo pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%.

Analyst Recommendations

This is a breakdown of current recommendations for Tsingtao Brewery and Diageo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tsingtao Brewery	0	1	0	0	2.00
Diageo	1	6	5	0	2.33

Diageo has a consensus price target of $116.50, suggesting a potential upside of 44.87%. Given Diageo’s stronger consensus rating and higher probable upside, analysts plainly believe Diageo is more favorable than Tsingtao Brewery.

Volatility & Risk

Tsingtao Brewery has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

9.0% of Diageo shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Diageo beats Tsingtao Brewery on 8 of the 9 factors compared between the two stocks.

About Tsingtao Brewery

Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products worldwide. It operates through seven segments: Shandong Region; South China Region; North China Region; East China Region; Southeast China Region; Hong Kong, Macau and Other Overseas Region; and Finance Company. The company sells its beer products primarily under the Tsingtao and Laoshan brand names. It also provides wealth management, and agency collection and payment services; and financing, construction, and logistics services, as well as technology promotion and application services. Tsingtao Brewery Company Limited was founded in 1903 and is headquartered in Qingdao, the People's Republic of China.

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.