Head-To-Head Contrast: Zevia PBC (NYSE:ZVIA) & Constellation Brands (NYSE:STZ)

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

Risk & Volatility

Zevia PBC has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Profitability

This table compares Zevia PBC and Constellation Brands’ 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%
Constellation Brands	18.87%	25.58%	9.61%

Valuation and Earnings

This table compares Zevia PBC 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
Zevia PBC	$169.81 million	0.59	-$9.92 million	($0.13)	-9.96
Constellation Brands	$9.06 billion	2.32	$1.69 billion	$10.48	11.74

Constellation Brands has higher revenue and earnings than Zevia PBC. Zevia PBC 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 recent recommendations and price targets for Zevia PBC and Constellation Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zevia PBC	1	1	2	0	2.25
Constellation Brands	2	9	12	0	2.43

Zevia PBC currently has a consensus target price of $4.50, suggesting a potential upside of 247.49%. Constellation Brands has a consensus target price of $167.10, suggesting a potential upside of 35.76%. Given Zevia PBC’s higher possible upside, equities research analysts clearly believe Zevia PBC is more favorable than Constellation Brands.

Insider and Institutional Ownership

53.2% of Zevia PBC shares are owned by institutional investors. Comparatively, 77.3% of Constellation Brands shares are owned by institutional investors. 7.7% of Zevia PBC shares are owned by company insiders. Comparatively, 12.2% of Constellation Brands shares are owned 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

Constellation Brands beats Zevia PBC on 13 of the 14 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 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.