Better World Acquisition (NASDAQ:BWAC – Get Rating) and Constellation Brands (NYSE:STZ – Get Rating) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Analyst Ratings
This is a breakdown of current ratings and price targets for Better World Acquisition and Constellation Brands, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Better World Acquisition | 0 | 0 | 0 | 0 | N/A |
| Constellation Brands | 0 | 5 | 15 | 0 | 2.75 |
Constellation Brands has a consensus target price of $252.58, indicating a potential upside of 12.04%. Given Constellation Brands’ higher possible upside, analysts plainly believe Constellation Brands is more favorable than Better World Acquisition.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Better World Acquisition | N/A | -86.49% | 4.45% |
| Constellation Brands | -0.70% | 20.48% | 7.99% |
Volatility and Risk
Better World Acquisition has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.
Insider & Institutional Ownership
26.0% of Better World Acquisition shares are owned by institutional investors. Comparatively, 84.9% of Constellation Brands shares are owned by institutional investors. 41.0% of Better World Acquisition shares are owned by insiders. Comparatively, 16.2% of Constellation Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Better World Acquisition and Constellation Brands’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Better World Acquisition | N/A | N/A | $3.25 million | N/A | N/A |
| Constellation Brands | $10.18 billion | 4.09 | -$71.00 million | ($0.51) | -442.03 |
Better World Acquisition has higher earnings, but lower revenue than Constellation Brands.
Summary
Constellation Brands beats Better World Acquisition on 7 of the 10 factors compared between the two stocks.
About Better World Acquisition
Better World Acquisition Corp. does not have significant operations. It intends to enter into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities in the healthy living industries. Better World Acquisition Corp. was incorporated in 2020 and is based in New York, New York.
About Constellation Brands
Constellation Brands, Inc. engages in the production, marketing, and distribution of beer, wine, and spirits. It operates through the following segments: Beer, Wine and Spirits, and Corporate Operations and Other, and Canopy. The Beer segment includes imported and craft beer brands. The Wine and Spirits segment sells wine brands across all categories-table wine, sparkling wine, and dessert wine-and across all price points. The Corporate Operations and Other segment comprise costs of executive management, corporate development, corporate finance, human resources, internal audit, investor relations, legal, public relations, and information technology. The Canopy segment consists of canopy equity method Investments. The company was founded by Marvin Sands in 1945 and is headquartered in Victor, NY.
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