Critical Comparison: Celsius (NASDAQ:CELH) & Constellation Brands (NYSE:STZ)

Celsius (NASDAQ:CELH) and Constellation Brands (NYSE:STZ) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Celsius has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Institutional and Insider Ownership

61.0% of Celsius shares are held by institutional investors. Comparatively, 77.3% of Constellation Brands shares are held by institutional investors. 2.3% of Celsius shares are held by insiders. Comparatively, 12.2% of Constellation Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Celsius and Constellation Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celsius	$2.52 billion	2.82	$108.00 million	$0.24	116.62
Constellation Brands	$9.76 billion	1.99	$1.69 billion	$10.48	10.85

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Celsius and Constellation Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celsius	2	5	14	0	2.57
Constellation Brands	2	9	12	0	2.43

Celsius presently has a consensus target price of $43.38, indicating a potential upside of 54.97%. Constellation Brands has a consensus target price of $160.14, indicating a potential upside of 40.84%. Given Celsius’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Celsius is more favorable than Constellation Brands.

Profitability

This table compares Celsius and Constellation Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celsius	4.24%	36.52%	8.53%
Constellation Brands	18.87%	25.58%	9.61%

About Celsius

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.

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.