Analyzing Diageo (NYSE:DEO) and Spirits Capital (OTCMKTS:SSCC)

Spirits Capital (OTCMKTS:SSCC) and Diageo (NYSE:DEO) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Profitability

This table compares Spirits Capital and Diageo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirits Capital	N/A	N/A	N/A
Diageo	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for Spirits Capital and Diageo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirits Capital	0	0	0	0	0.00
Diageo	3	3	5	0	2.18

Diageo has a consensus target price of $116.50, indicating a potential upside of 31.83%. Given Diageo’s stronger consensus rating and higher probable upside, analysts plainly believe Diageo is more favorable than Spirits Capital.

Valuation and Earnings

This table compares Spirits Capital and Diageo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirits Capital	N/A	N/A	-$5.59 million	($0.07)	-31.71
Diageo	$20.25 billion	2.43	$2.35 billion	N/A	N/A

Diageo has higher revenue and earnings than Spirits Capital.

Institutional and Insider Ownership

9.0% of Diageo shares are held by institutional investors. 29.8% of Spirits Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Spirits Capital has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Summary

Diageo beats Spirits Capital on 7 of the 8 factors compared between the two stocks.

About Spirits Capital

Spirits Cap Corp. operates a financial technology platform. Its platform provides secured purchase of American whiskey while maturing. The company was incorporated in 1995 and is based in Newport Beach, California.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products. The company provides its products under the Johnnie Walker, Crown Royal, J&B, Buchanan’s, Smirnoff, Cîroc, Ketel One, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, Guinness, Shui Jing Fang, Yenì, McDowell’s, Don Papa, Aviation American, Seagram, Seagram’s 7 Crown, Zacapa, Black Dog, Black & White, Signature, Royal Challenge, Godawan, Antiquity, Gordon’s, Old Parr, Windsor, Bundaberg, Ypióca, Bulleit, and Bell’s brand names. It operates in the United States, the United Kingdom, Türkiye, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.