Analyzing LVMH-Moet Hennessy Louis Vuitton (OTC:LVMUY) & Constellation Brands (NYSE:STZ)

Constellation Brands (NYSE:STZ) and LVMH-Moet Hennessy Louis Vuitton (OTC:LVMUY) are both large-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Constellation Brands and LVMH-Moet Hennessy Louis Vuitton, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	0	11	11	0	2.50
LVMH-Moet Hennessy Louis Vuitton	0	0	0	3	4.00

Constellation Brands currently has a consensus target price of $249.18, indicating a potential upside of 35.65%. Given Constellation Brands’ higher possible upside, equities analysts clearly believe Constellation Brands is more favorable than LVMH-Moet Hennessy Louis Vuitton.

Volatility & Risk

Constellation Brands has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, LVMH-Moet Hennessy Louis Vuitton has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Constellation Brands and LVMH-Moet Hennessy Louis Vuitton”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Constellation Brands	$10.18 billion	3.26	$1.73 billion	$3.72	49.38
LVMH-Moet Hennessy Louis Vuitton	$91.64 billion	3.45	$13.58 billion	N/A	N/A

LVMH-Moet Hennessy Louis Vuitton has higher revenue and earnings than Constellation Brands.

Dividends

Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 2.2%. LVMH-Moet Hennessy Louis Vuitton pays an annual dividend of $2.29 per share and has a dividend yield of 1.8%. Constellation Brands pays out 108.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Constellation Brands and LVMH-Moet Hennessy Louis Vuitton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Constellation Brands	6.27%	26.55%	10.03%
LVMH-Moet Hennessy Louis Vuitton	N/A	N/A	N/A

Insider and Institutional Ownership

77.3% of Constellation Brands shares are owned by institutional investors. Comparatively, 0.3% of LVMH-Moet Hennessy Louis Vuitton shares are owned by institutional investors. 12.2% of Constellation Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Constellation Brands beats LVMH-Moet Hennessy Louis Vuitton on 9 of the 15 factors compared between the two stocks.

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.

About LVMH-Moet Hennessy Louis Vuitton

LVMH Moët Hennessy – Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers wines, and spirits under the domaine des Lambrays, Château d’Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Château Galoupet, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Joseph Phelps, Newton Vineyard, Cloudy Bay, Belvedere, Colgin Cellars,Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, Volcan de mi Tierra, and Eminente brands; and fashion and leather products under the Loewe, Moynat, Louis Vuitton, Berluti, RIMOWA, Patou, Loro Piana, FENDI, Celine, Christian Dior, Emilio Pucci, Givenchy, Kenzo, and Marc Jacobs brands. It also provides perfumes and cosmetics under the Stella by Stella Mccartney, Officine Universelle Buly, Guerlain, Acqua di Parma, Parfums Christian Dior, Givenchy Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, KVD Beauty, Maison Francis Kurkdjian, Cha Ling, Fenty Beauty by Rihanna, and Olehenriksen brands; watches and jewelry under the Chaumet, Tiffany & Co., TAG Heuer, Zenith, Bulgari, Fred, Hublot, and Repossi brands; and custom-designed yachts under the Feadship brand and hotels under the Cheval Blanc brand names, as well as designs and builds luxury yachts under the Royal Van Lent brand. In addition, the company offers daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Cova, Jardin d’Acclimatation, Le Parisien, Connaissance des Arts, Investir, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d’Acclimatation, a leisure and theme park. LVMH Moët Hennessy – Louis Vuitton, Société Européenne was founded in 1365 and is headquartered in Paris, France.