Constellation Brands Inc (STZ) vs Molson Coors Beverage Company (TAP)

Constellation Brands Inc and Molson Coors Beverage Company are both Beverages Brewers companies. Constellation Brands Inc is the larger, with a market value of $21.1B against $7.1B — 3.0× the size. Molson Coors Beverage Company has negative trailing earnings, so its P/E is not meaningful; Constellation Brands Inc trades at 10.9×. Molson Coors Beverage Company grew revenue faster over the last twelve months: −1.77% against −4.32%. Constellation Brands Inc has the higher net margin (20.9% vs −20.8%) and the higher return on invested capital (9.11% vs −9.90%). Both pay a dividend; Molson Coors Beverage Company yields more (5.13% vs 4.18%). Across the 22 metrics below, Molson Coors Beverage Company leads on 12 and Constellation Brands Inc on 10.

Valuation

Metric STZ TAP Beverages Brewers median
P/E 10.90 n/m 17.60
P/S 2.27 0.63 0.92
P/B 2.35 0.68 2.23
Price to free cash flow 11.17 5.19 11.17
EV/EBITDA 9.76 6.64 9.68
EV/Sales 3.38 1.13 1.13
Earnings yield 9.18% (30.99%) 5.64%
Free cash flow yield 8.95% 19.28% 8.95%

Profitability

Metric STZ TAP Beverages Brewers median
Gross margin 52.65% 37.01% 48.88%
Operating margin 30.23% (22.71%) 8.54%
Net margin 20.90% (20.81%) 3.62%
Free cash flow margin 20.32% 12.13% 12.13%
Return on equity 23.09% (19.26%) 6.89%
Return on assets 8.85% (9.01%) 4.09%
Return on invested capital 9.11% (9.90%) 6.25%

Growth

Metric STZ TAP Beverages Brewers median
Revenue growth (TTM) (4.32%) (1.77%) (1.77%)
EPS growth (last fiscal year) 2,235.56% (300.93%) 5.88%
Revenue growth, 5-year CAGR 1.19% 2.91% 4.82%
Net income growth, 5-year CAGR (3.33%) 0.00% 0.61%

Health

Metric STZ TAP Beverages Brewers median
Debt to equity 1.16 0.75 0.71
Current ratio 1.00 0.88 1.02
Net debt to EBITDA 3.33 2.65 2.65

Dividend

Metric STZ TAP Beverages Brewers median
Dividend yield 4.18% 5.13% 3.57%
Payout ratio 0.46 — 0.36

Size

Metric STZ TAP Beverages Brewers median
Market cap 21.11b 7.12b 21.11b

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