Diageo plc (DEO) vs MGP Ingredients, Inc. (MGPI)

Diageo plc and MGP Ingredients, Inc. are both Beverages Wineries & Distilleries companies. Diageo plc is the larger, with a market value of $48.3B against $272.8M — 177.1× the size. MGP Ingredients, Inc. has negative trailing earnings, so its P/E is not meaningful; Diageo plc trades at 22.8×. Diageo plc grew revenue faster over the last twelve months: 25.2% against −18.0%. Diageo plc has the higher net margin (21.5% vs −48.2%) and the higher return on invested capital (0.00% vs −17.9%). Both pay a dividend; Diageo plc yields more (2.71% vs 0.56%). Across the 19 metrics below, Diageo plc leads on 12 and MGP Ingredients, Inc. on 7.

Valuation

Metric DEO MGPI Beverages Wineries & Distilleries median
P/E 22.81 n/m —
P/S n/m 0.55 0.54
P/B n/m 0.47 0.48
Price to free cash flow n/m 309.43 13.31
EV/EBITDA 1.48 7.16 11.74
EV/Sales 0.50 1.25 1.25
Earnings yield 4.38% (87.83%) 0.04%
Free cash flow yield 0.00% 0.32% 0.16%

Profitability

Metric DEO MGPI Beverages Wineries & Distilleries median
Gross margin 60.51% 35.55% 47.34%
Operating margin 0.00% (53.95%) (1.13%)
Net margin 21.50% (48.15%) (1.20%)
Free cash flow margin 0.00% 0.18% 0.09%
Return on equity 0.00% (33.65%) 0.00%
Return on assets 0.00% (19.70%) (1.72%)
Return on invested capital 0.00% (17.88%) 0.00%

Growth

Metric DEO MGPI Beverages Wineries & Distilleries median
Revenue growth (TTM) 25.19% (17.95%) (1.37%)
EPS growth (last fiscal year) (26.24%) (419.87%) —
Revenue growth, 5-year CAGR 2.77% 6.28% 2.77%
Net income growth, 5-year CAGR (13.47%) 0.00% 0.00%

Health

Metric DEO MGPI Beverages Wineries & Distilleries median
Debt to equity 1.75 0.63 0.44
Current ratio 1.60 6.99 2.92
Net debt to EBITDA 3.66 2.85 1.34

Dividend

Metric DEO MGPI Beverages Wineries & Distilleries median
Dividend yield 2.71% 0.56% —
Payout ratio 0.47 0.10 0.10

Size

Metric DEO MGPI Beverages Wineries & Distilleries median
Market cap 48.33b 272.82m 272.82m

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