Diageo (OTCMKTS:DGEAF) and Zevia PBC (NYSE:ZVIA) Critical Review

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

Institutional & Insider Ownership

53.2% of Zevia PBC shares are owned by institutional investors. Comparatively, 33.3% of Diageo shares are owned by institutional investors. 7.7% of Zevia PBC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Zevia PBC and Diageo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zevia PBC	1	1	2	0	2.25
Diageo	0	0	0	0	0.00

Zevia PBC currently has a consensus target price of $4.50, suggesting a potential upside of 248.30%. Given Zevia PBC’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Zevia PBC is more favorable than Diageo.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zevia PBC	$161.26 million	0.62	-$9.92 million	($0.13)	-9.94
Diageo	N/A	N/A	N/A	$0.78	30.78

Diageo has lower revenue, but higher earnings than Zevia PBC. Zevia PBC is trading at a lower price-to-earnings ratio than Diageo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zevia PBC and Diageo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zevia PBC	-5.34%	-16.92%	-9.56%
Diageo	N/A	N/A	N/A

Summary

Zevia PBC beats Diageo on 6 of the 11 factors compared between the two stocks.

About Zevia PBC

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. It offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavoured malt beverages. The company also provides Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as ready to drink and non-alcoholic products. It provides its products primarily under the Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal, Don Julio, Cîroc, Buchanan's, Casamigos, J&B, and Ketel One brands. The company operates in the United States, the United Kingdom, Turkey, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. Diageo plc was incorporated in 1886 and is headquartered in London, the United Kingdom.