Critical Survey: Brown Forman (NYSE:BF.A) & Crimson Wine Group (OTCMKTS:CWGL)

Earnings and Valuation

This table compares Crimson Wine Group and Brown Forman”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crimson Wine Group	$65.08 million	1.39	$610,000.00	$0.03	146.00
Brown Forman	$3.98 billion	3.43	$869.00 million	$2.12	14.04

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

Profitability

This table compares Crimson Wine Group and Brown Forman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crimson Wine Group	0.94%	0.33%	0.29%
Brown Forman	20.64%	19.93%	9.85%

Risk and Volatility

Crimson Wine Group has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Brown Forman has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

17.0% of Crimson Wine Group shares are held by institutional investors. Comparatively, 3.8% of Brown Forman shares are held by institutional investors. 34.6% of Crimson Wine Group shares are held by company insiders. Comparatively, 4.0% of Brown Forman shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Brown Forman beats Crimson Wine Group on 7 of the 11 factors compared between the two stocks.

About Crimson Wine Group

Crimson Wine Group, Ltd., through its subsidiaries, produces and sells wines in the United States and internationally. It operates in two segments, Wholesale and Direct to Consumer. The company also sells bulk wines and grapes; and other non-wine products, such as merchandise, as well as provides custom winemaking services. The company sells its products under the Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards, Seghesio Family Vineyards, Double Canyon, Seven Hills Winery, and Malene Wines brand names. It offers wines to distributors, as well as directly to consumers through wine club memberships and direct phone calls, as well as its website, third-party websites, and other online sales. The company was formerly known as Leucadia Cellars, Ltd. and changed its name to Crimson Wine Group, Ltd. in November 2007. Crimson Wine Group, Ltd. was incorporated in 1991 and is headquartered in Napa, California.

About Brown Forman

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniel's, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, Coopers' Craft, el Jimador, Herradura, New Mix, Pepe Lopez, Antiguo, Finlandia, Korbel Champagne, and Sonoma-Cutrer brands. It is also involved in the sale of used barrels, bulk whiskey, and wine; and provision of contract bottling services. The company serves retail customers and consumers through distributors or state governments; and retailers, wholesalers, and provincial governments directly. It has operations in the United States, the United Kingdom, Germany, Australia, Mexico, and internationally. Brown-Forman Corporation was founded in 1870 and is headquartered in Louisville, Kentucky.