Critical Survey: Davide Campari-Milano (DVDCY) versus The Competition

Dividends

Davide Campari-Milano pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Davide Campari-Milano pays out 15.4% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 3.0% and pay out 49.0% of their earnings in the form of a dividend.

Institutional and Insider Ownership

36.7% of shares of all “Beverages” companies are held by institutional investors. 19.1% of shares of all “Beverages” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Davide Campari-Milano and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Davide Campari-Milano	$2.06 billion	$345.41 million	37.88
Davide Campari-Milano Competitors	$9.56 billion	$874.57 million	10.11

Davide Campari-Milano’s peers have higher revenue and earnings than Davide Campari-Milano. Davide Campari-Milano is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Davide Campari-Milano has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Davide Campari-Milano’s peers have a beta of -0.19, meaning that their average stock price is 119% less volatile than the S&P 500.

Profitability

This table compares Davide Campari-Milano and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Davide Campari-Milano	N/A	N/A	N/A
Davide Campari-Milano Competitors	-9.21%	-38.29%	-0.91%

Summary

Davide Campari-Milano beats its peers on 6 of the 11 factors compared.

Davide Campari-Milano Company Profile

Davide Campari-Milano S.p.A., together with its subsidiaries, manufactures and trades in alcoholic and non-alcoholic beverages in the Americas, Europe, the Middle East, Africa, Europe, and the Asia-Pacific. Its product portfolio includes aperitifs, vodka, whisky, tequila, rum, gin, liqueurs, sparkling and still wines, and ready to drink products under approximately 50 brands. The company was founded in 1860 and is headquartered in Sesto San Giovanni, Italy. Davide Campari-Milano S.p.A. is a subsidiary of Alicros S.p.A.