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 $52.3B against $297.8M — 175.5× the size. SNDL Inc. has negative trailing earnings, so its P/E is not meaningful; Diageo plc trades at 24.8×. Diageo plc grew revenue faster over the last twelve months: 25.2% against −1.09%. Diageo plc has the higher net margin (21.5% vs −2.39%) and the higher return on invested capital (0.00% vs −1.32%). Across the 18 metrics below, Diageo plc leads on 9 and SNDL Inc. on 9.

Valuation

Metric DEO SNDL Beverages Wineries & Distilleries median
P/E 24.79 n/m —
P/S n/m 0.48 0.56
P/B n/m 0.42 0.51
Price to free cash flow n/m 8.95 14.67
EV/EBITDA 1.48 12.79 12.71
EV/Sales 0.50 0.48 1.35
Earnings yield 4.03% (4.76%) (0.37%)
Free cash flow yield 0.00% 11.17% 0.00%

Profitability

Metric DEO SNDL Beverages Wineries & Distilleries median
Gross margin 60.51% 26.24% 47.34%
Operating margin 0.00% (2.25%) (1.13%)
Net margin 21.50% (2.39%) (1.20%)
Free cash flow margin 0.00% 5.65% 0.09%
Return on equity 0.00% (2.06%) 0.00%
Return on assets 0.00% (1.72%) (0.86%)
Return on invested capital 0.00% (1.32%) 0.00%

Growth

Metric DEO SNDL Beverages Wineries & Distilleries median
Revenue growth (TTM) 25.19% (1.09%) (1.37%)
EPS growth (last fiscal year) (26.24%) 84.62% (16.85%)
Revenue growth, 5-year CAGR 2.77% 71.64% 2.77%
Net income growth, 5-year CAGR (13.47%) 0.00% 0.00%

Health

Metric DEO SNDL Beverages Wineries & Distilleries median
Debt to equity 1.75 0.12 0.44
Current ratio 1.60 4.76 3.02
Net debt to EBITDA 3.66 (3.08) 1.34

Dividend

Metric DEO SNDL Beverages Wineries & Distilleries median
Dividend yield 4.75% — —
Payout ratio — — —

Size

Metric DEO SNDL Beverages Wineries & Distilleries median
Market cap 52.28b 297.81m 297.81m

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