Molson Coors Beverage (NYSE:TAP) and International Flavors & Fragrances (NYSE:IFF) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Risk and Volatility
Molson Coors Beverage has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Insider and Institutional Ownership
40.0% of Molson Coors Beverage shares are owned by institutional investors. Comparatively, 94.4% of International Flavors & Fragrances shares are owned by institutional investors. 2.4% of Molson Coors Beverage shares are owned by insiders. Comparatively, 0.4% of International Flavors & Fragrances shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Molson Coors Beverage and International Flavors & Fragrances, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Molson Coors Beverage | 2 | 6 | 6 | 0 | 2.29 |
International Flavors & Fragrances | 0 | 4 | 8 | 0 | 2.67 |
Molson Coors Beverage currently has a consensus target price of $48.5385, suggesting a potential upside of 6.94%. International Flavors & Fragrances has a consensus target price of $141.1167, suggesting a potential upside of 7.81%. Given International Flavors & Fragrances' stronger consensus rating and higher probable upside, analysts clearly believe International Flavors & Fragrances is more favorable than Molson Coors Beverage.
Valuation and Earnings
This table compares Molson Coors Beverage and International Flavors & Fragrances' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Molson Coors Beverage | $13.01 billion | 0.76 | $241.70 million | $4.54 | 10.00 |
International Flavors & Fragrances | $5.14 billion | 6.33 | $455.87 million | $6.17 | 21.21 |
International Flavors & Fragrances has lower revenue, but higher earnings than Molson Coors Beverage. Molson Coors Beverage is trading at a lower price-to-earnings ratio than International Flavors & Fragrances, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Molson Coors Beverage and International Flavors & Fragrances' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Molson Coors Beverage | 4.86% | 7.35% | 3.44% |
International Flavors & Fragrances | 7.44% | 11.00% | 5.10% |
Summary
International Flavors & Fragrances beats Molson Coors Beverage on 11 of the 14 factors compared between the two stocks.