Financial Analysis: Monster Beverage (NASDAQ:MNST) versus Treasury Wine Estates (OTCMKTS:TSRYF)

Treasury Wine Estates (OTCMKTS:TSRYF) and Monster Beverage (NASDAQ:MNST) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

36.4% of Treasury Wine Estates shares are owned by institutional investors. Comparatively, 72.4% of Monster Beverage shares are owned by institutional investors. 8.1% of Monster Beverage shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Treasury Wine Estates and Monster Beverage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Treasury Wine Estates	N/A	N/A	N/A	($0.16)	-28.21
Monster Beverage	$8.29 billion	11.06	$1.91 billion	$1.08	43.35

Monster Beverage has higher revenue and earnings than Treasury Wine Estates. Treasury Wine Estates is trading at a lower price-to-earnings ratio than Monster Beverage, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Treasury Wine Estates and Monster Beverage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treasury Wine Estates	N/A	N/A	N/A
Monster Beverage	23.08%	26.02%	21.21%

Analyst Ratings

This is a summary of current recommendations and price targets for Treasury Wine Estates and Monster Beverage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Treasury Wine Estates	0	0	0	0	0.00
Monster Beverage	0	9	13	0	2.59

Monster Beverage has a consensus target price of $50.33, suggesting a potential upside of 7.49%. Given Monster Beverage’s stronger consensus rating and higher probable upside, analysts plainly believe Monster Beverage is more favorable than Treasury Wine Estates.

Summary

Monster Beverage beats Treasury Wine Estates on 11 of the 11 factors compared between the two stocks.

About Treasury Wine Estates

Treasury Wine Estates Limited operates as a wine company primarily in Australia, the United States, the United Kingdom, and internationally. The company engages in the viticulture and winemaking; and marketing, sale, and distribution of wine. Its wine portfolio includes luxury, premium and commercial wine brands, such as Penfolds, DAOU Vineyards, Wolf Blass, 19 Crimes, St Hubert’s The Stag, Lindeman’s, Squealing pig, Blossom Hill, Frank Family Vineyards, Pepperjack, Wynns, Matua, Seppelt, Beringer, Etude, Sterling Vineyards, Beaulieu Vineyard, Stags’ Leap, Beringer Bros, and Castello di Gabbiano. The company also provides contract bottling services to third parties; and sells grape and bulk wine. It owns and leases vineyards in Australia and New Zealand, California, France, and Italy. The company markets and sells its products to distributors, wholesalers, retails chains, independent retailers, and on-premise outlets, as well as directly to consumers. The company was founded in 1843 and is headquartered in Melbourne, Australia.

About Monster Beverage

Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, Alcohol Brands, and Other. It offers carbonated non-carbonated energy drinks, ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks and single-serve still waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages. The company sells its products to full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience chains, food service customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Muscle Monster, Espresso Monster, Monster Tour Water, Fury, Monster MAXX, Caffe Monster, Monster Hydro, Monster HydroSport Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, Reign Storm, Bang Energy, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, and Fury brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.