Analyzing Constellation Brands (NYSE:STZ) and Willamette Valley Vineyards (NASDAQ:WVVI)

Willamette Valley Vineyards (NASDAQ:WVVI) and Constellation Brands (NYSE:STZ) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Valuation & Earnings

This table compares Willamette Valley Vineyards and Constellation Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Willamette Valley Vineyards	$37.20 million	0.23	-$920,000.00	($0.92)	-1.85
Constellation Brands	$9.76 billion	2.53	$1.69 billion	$11.15	13.07

Constellation Brands has higher revenue and earnings than Willamette Valley Vineyards. Willamette Valley Vineyards is trading at a lower price-to-earnings ratio than Constellation Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Willamette Valley Vineyards and Constellation Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willamette Valley Vineyards	1	0	0	0	1.00
Constellation Brands	4	7	12	0	2.35

Constellation Brands has a consensus price target of $154.09, suggesting a potential upside of 5.71%. Given Constellation Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Constellation Brands is more favorable than Willamette Valley Vineyards.

Volatility and Risk

Willamette Valley Vineyards has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Profitability

This table compares Willamette Valley Vineyards and Constellation Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willamette Valley Vineyards	-5.93%	-10.31%	-2.11%
Constellation Brands	19.57%	24.75%	9.54%

Insider and Institutional Ownership

12.2% of Willamette Valley Vineyards shares are owned by institutional investors. Comparatively, 77.3% of Constellation Brands shares are owned by institutional investors. 9.1% of Willamette Valley Vineyards shares are owned by insiders. Comparatively, 12.2% of Constellation Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Constellation Brands beats Willamette Valley Vineyards on 14 of the 14 factors compared between the two stocks.

About Willamette Valley Vineyards

Willamette Valley Vineyards, Inc. produces and sells wine in the United States and internationally. The company operates through two segments, Direct Sales and Distributor Sales. It primarily offers Pinot Noir, Chardonnay, Pinot Gris, Pinot Blanc, Sauvignon Blanc, Gruner Veltliner, Rose, Brut, Brut Rose, and Riesling branded wines under the Willamette Valley Vineyards label; Semi-Sparkling Muscat branded wine under the Tualatin Estate Vineyards label; Syrah, Merlot, Cabernet Sauvignon, Grenache, Cabernet Franc, Tempranillo, Malbec, The Griffin, and Viognier branded wines under the Griffin Creek label; and Brut, Brut Rose, and Blanc de Blancs under the Domaine Willamette label. The company also provides Pinot Noir and Chardonnay branded wine under the Elton label; Chrysologue, Merlot, and Cabernet Sauvignon branded wine under the Pambrun label; and Frontiere Syrah, Lisette Rose, Graviére Syrah, Voyageur Syrah, Bourgeois Grenache, and Voltigeur Viognier branded wine under the Maison Bleue label, as well as offers wines under the Natoma, Pere Ami, and Metis labels. It owns and leases approximately 1,018 acres of land. The company markets and sells its wine products through direct sales at the retail locations; mailing lists; and distributors and wine brokers. Willamette Valley Vineyards, Inc. was founded in 1983 and is headquartered in Turner, Oregon.

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.