Contrasting Dr Pepper Snapple Group (DPS) & Eastside Distilling (EAST)

Dr Pepper Snapple Group (NYSE: DPS) and Eastside Distilling (NASDAQ:EAST) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Dividends

Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 1.9%. Eastside Distilling does not pay a dividend. Dr Pepper Snapple Group pays out 51.1% of its earnings in the form of a dividend. Dr Pepper Snapple Group has raised its dividend for 8 consecutive years.

Profitability

This table compares Dr Pepper Snapple Group and Eastside Distilling’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dr Pepper Snapple Group 15.62% 35.49% 8.07%
Eastside Distilling -145.79% -123.27% -71.90%

Earnings and Valuation

This table compares Dr Pepper Snapple Group and Eastside Distilling’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dr Pepper Snapple Group $6.69 billion 3.33 $1.08 billion $4.54 27.24
Eastside Distilling $3.79 million 11.66 -$5.27 million ($1.42) -5.99

Dr Pepper Snapple Group has higher revenue and earnings than Eastside Distilling. Eastside Distilling is trading at a lower price-to-earnings ratio than Dr Pepper Snapple Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.7% of Dr Pepper Snapple Group shares are held by institutional investors. Comparatively, 8.7% of Eastside Distilling shares are held by institutional investors. 0.6% of Dr Pepper Snapple Group shares are held by company insiders. Comparatively, 20.8% of Eastside Distilling shares are held by company 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 ratings for Dr Pepper Snapple Group and Eastside Distilling, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dr Pepper Snapple Group 0 11 4 0 2.27
Eastside Distilling 0 0 1 0 3.00

Dr Pepper Snapple Group currently has a consensus target price of $117.43, suggesting a potential downside of 5.05%. Eastside Distilling has a consensus target price of $7.00, suggesting a potential downside of 17.65%. Given Dr Pepper Snapple Group’s higher probable upside, research analysts clearly believe Dr Pepper Snapple Group is more favorable than Eastside Distilling.

Volatility and Risk

Dr Pepper Snapple Group has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Eastside Distilling has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Summary

Dr Pepper Snapple Group beats Eastside Distilling on 13 of the 17 factors compared between the two stocks.

About Dr Pepper Snapple Group

Dr Pepper Snapple Group, Inc. manufactures and distributes non-alcoholic beverages in the United States, Mexico and the Caribbean, and Canada. The company operates through three segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages. It offers flavored carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, mineral and coconut water, and mixers, as well as manufactures and sells Mott's apple sauces. The company sells its flavored CSD products primarily under the Dr Pepper, Canada Dry, Peñafiel, Squirt, 7UP, Crush, A&W, Sunkist soda, Schweppes, RC Cola, Big Red, Vernors, Venom, IBC, Diet Rite, and Sun Drop; and NCB products primarily under the Snapple, Hawaiian Punch, Mott's, FIJI, Clamato, Bai, Yoo-Hoo, Deja Blue, ReaLemon, AriZona tea, Vita Coco, BODYARMOR, Mr & Mrs T mixers, Nantucket Nectars, Garden Cocktail, Mistic, and Rose's brand names. It serves bottlers and distributors, and retailers. Dr Pepper Snapple Group, Inc. was incorporated in 2007 and is headquartered in Plano, Texas.

About Eastside Distilling

Eastside Distilling, Inc. develops, manufactures, produces, and markets hand-crafted spirits in the United States. The company offers bourbon under the Burnside Bourbon and Oregon Oak Burnside Bourbon brand names; premium whiskey under the Barrel Hitch American Whiskey and Barrel Hitch Oregon Oaked Whiskey brand names; distinctive whiskey under the Cherry Bomb Whiskey and Marionberry Whiskey brand names; rum under the Below Deck Silver Rum, Below Deck Spiced Rum, Below Deck Coffee Rum, and Below Deck Ginger Rum brand names; and vodka under the Portland Potato Vodka brand name. It also provides various handmade products, including Advocaat (eggnog) Liqueur, Peppermint Bark Liqueur, Bier Schnapps, and Holiday Spiced Liqueur. In addition, the company offers tastings, tasting room tours, private parties, and merchandise sales from its facilities in Oregon. Eastside Distilling, Inc. was founded in 2003 and is headquartered in Portland, Oregon.

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