Diageo plc (DEO) vs SNDL Inc. (SNDL)

Diageo plc and SNDL Inc. are both Beverages Wineries & Distilleries companies. Diageo plc is the larger, with a market value of $55.8B against $335.8M — 166.1× the size. SNDL Inc. has negative trailing earnings, so its P/E is not meaningful; Diageo plc trades at 26.1×. Diageo plc grew revenue faster over the last twelve months: 25.2% against −2.67%. Diageo plc has the higher net margin (21.5% vs −6.43%) and the higher return on invested capital (0.00% vs −4.08%). Across the 17 metrics below, Diageo plc leads on 9 and SNDL Inc. on 8.

Valuation

Metric DEO SNDL Beverages Wineries & Distilleries median
P/E 26.10 n/m —
P/S n/m 0.51 0.51
P/B n/m 0.47 0.55
Price to free cash flow n/m 11.42 15.44
EV/EBITDA 1.48 n/m 13.43
EV/Sales 0.50 0.57 1.03
Earnings yield 3.83% (12.19%) (33.64%)
Free cash flow yield 0.00% 8.75% 0.00%

Profitability

Metric DEO SNDL Beverages Wineries & Distilleries median
Gross margin 60.51% 25.74% 46.89%
Operating margin 0.00% (6.95%) (7.45%)
Net margin 21.50% (6.43%) (9.28%)
Free cash flow margin 0.00% 4.73% 0.06%
Return on equity 0.00% (5.62%) 0.00%
Return on assets 0.00% (4.66%) 0.00%
Return on invested capital 0.00% (4.08%) 0.00%

Growth

Metric DEO SNDL Beverages Wineries & Distilleries median
Revenue growth (TTM) 25.19% (2.67%) (1.65%)
EPS growth (last fiscal year) (26.24%) 84.62% (16.85%)
Revenue growth, 5-year CAGR 2.77% 71.64% 4.53%
Net income growth, 5-year CAGR (13.47%) 0.00% (2.28%)

Health

Metric DEO SNDL Beverages Wineries & Distilleries median
Debt to equity 1.75 0.13 0.57
Current ratio 1.60 3.92 3.02
Net debt to EBITDA 3.66 (3.08) 1.34

Dividend

Metric DEO SNDL Beverages Wineries & Distilleries median
Dividend yield 2.00% — —
Payout ratio — — —

Size

Metric DEO SNDL Beverages Wineries & Distilleries median
Market cap 55.78b 335.78m 343.08m

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