Contrasting Big Rock Brewery (OTCMKTS:BRBMF) and Constellation Brands (NYSE:STZ)

Big Rock Brewery (OTCMKTS:BRBMF) and Constellation Brands (NYSE:STZ) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Profitability

This table compares Big Rock Brewery and Constellation Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Rock Brewery	-20.63%	-52.12%	-23.36%
Constellation Brands	-4.11%	31.41%	10.81%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Big Rock Brewery and Constellation Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Rock Brewery	0	0	0	0	0.00
Constellation Brands	4	9	13	1	2.41

Constellation Brands has a consensus target price of $191.28, indicating a potential upside of 44.45%. Given Constellation Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Constellation Brands is more favorable than Big Rock Brewery.

Valuation & Earnings

This table compares Big Rock Brewery and Constellation Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Rock Brewery	$31.65 million	0.56	-$9.83 million	($1.10)	-0.66
Constellation Brands	$10.96 billion	2.13	-$81.40 million	($2.39)	-55.41

Big Rock Brewery has higher earnings, but lower revenue than Constellation Brands. Constellation Brands is trading at a lower price-to-earnings ratio than Big Rock Brewery, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

77.3% of Constellation Brands shares are owned by institutional investors. 38.4% of Big Rock Brewery shares are owned by company insiders. Comparatively, 12.5% 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 company will outperform the market over the long term.

Risk and Volatility

Big Rock Brewery has a beta of -0.69, meaning that its stock price is 169% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Summary

Constellation Brands beats Big Rock Brewery on 11 of the 15 factors compared between the two stocks.

About Big Rock Brewery

Big Rock Brewery Inc. produces, markets, and distributes craft beers, ciders, and ready-to-drink beverages primarily in Canada. The company offers a selection of beer, ciders, and ready-to-drink beverages under the Big Rock, Tree Brewing, Rock Creek Cider, Dukes Cider, AGD, Shaftbury, Bow Valley, White Peaks, and Cottage Springs brands. It also provides apparel and accessories, including jackets, headwear, sweaters, glassware, belt buckles, and coolers. The company sells its products to provincial liquor boards, grocery stores, on-premise and contract manufacturing customers; and through premises owned and/or operated by the Corporation, Big Rock's retail location and online through various e-commerce platforms. website, and third-party delivery services. Big Rock Brewery Inc. was founded in 1985 and is headquartered in Calgary, Canada.

About Constellation Brands

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Familiar, Corona Hard Seltzer, Corona Light, Corona Non-Alcoholic, Corona Premier, Corona Refresca, Modelo Especial, Modelo Chelada, Modelo Negra, Modelo Oro, Victoria, Vicky Chamoy, and Pacifico brands. It also offers wine under the Cook’s California Champagne, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, My Favorite Neighbor, Robert Mondavi Winery, Schrader, and The Prisoner Wine Company brands; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson’s Green Brier, and SVEDKA brands. The company provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.