Leading Brands (LBIX) versus Monster Beverage (MNST) Critical Analysis

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Leading Brands (NASDAQ:LBIX) and Monster Beverage (NASDAQ:MNST) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

Leading Brands has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Monster Beverage has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Insider & Institutional Ownership

6.9% of Leading Brands shares are held by institutional investors. Comparatively, 64.9% of Monster Beverage shares are held by institutional investors. 9.7% of Monster Beverage shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Leading Brands and Monster Beverage, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leading Brands 0 0 0 0 N/A
Monster Beverage 1 4 11 0 2.63

Monster Beverage has a consensus price target of $64.87, indicating a potential upside of 22.46%. Given Monster Beverage’s higher possible upside, analysts clearly believe Monster Beverage is more favorable than Leading Brands.

Earnings & Valuation

This table compares Leading Brands and Monster Beverage’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leading Brands $680,000.00 4.74 -$2.63 million N/A N/A
Monster Beverage $3.37 billion 8.69 $820.67 million $1.46 36.28

Monster Beverage has higher revenue and earnings than Leading Brands.

Profitability

This table compares Leading Brands and Monster Beverage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leading Brands N/A -22.50% -17.43%
Monster Beverage 25.27% 24.39% 19.67%

Summary

Monster Beverage beats Leading Brands on 11 of the 11 factors compared between the two stocks.

About Leading Brands

Leading Brands, Inc. does not have significant operations. Previously, it was engaged in the production and distribution of beverages. The company was formerly known as Brio Industries Inc. and changed its name to Leading Brands, Inc. in October 1999. Leading Brands, Inc. was founded in 1986 and is headquartered in Vancouver, Canada.

About Monster Beverage

Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes energy drink beverages, soda, and its concentrates in the United States and internationally. It operates through three segments: Monster Energy Drinks, Strategic Brands, and Other. The company offers ready-to-drink packaged drinks, non-carbonated dairy based coffee and energy drinks, and non-carbonated energy shakes primarily to bottlers and full service beverage distributors, as well as sells directly to retail grocery and specialty chains, wholesalers, club stores, drug stores, mass merchandisers, convenience chains, food service customers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations; and ready-to-drink packaged energy drinks to bottlers and full service beverage distributors. Monster Beverage Corporation sells its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Extra Strength Nitrous Technology, Java Monster, Muscle Monster, Punch Monster, Juice Monster, Übermonster, BU, Mutant Super Soda, Monster Hydro, Espresso Monster, CaffĂ© Monster, Nalu, NOS, Full Throttle, Burn, Mother, Ultra Energy, Play and Power Play(stylized), Relentless, BPM, Gladiator, and Samurai 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.

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