Critical Survey: Truett-Hurst (THST) versus Keurig Dr Pepper (KDP)

Truett-Hurst (NASDAQ:THST) and Keurig Dr Pepper (NYSE:KDP) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Volatility and Risk

Truett-Hurst has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Truett-Hurst and Keurig Dr Pepper, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Truett-Hurst 0 0 0 0 N/A
Keurig Dr Pepper 1 7 7 0 2.40

Keurig Dr Pepper has a consensus target price of $28.28, indicating a potential downside of 4.28%. Given Keurig Dr Pepper’s higher probable upside, analysts plainly believe Keurig Dr Pepper is more favorable than Truett-Hurst.

Profitability

This table compares Truett-Hurst and Keurig Dr Pepper’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Truett-Hurst N/A 8.52% 5.31%
Keurig Dr Pepper 9.39% 8.95% 3.99%

Dividends

Keurig Dr Pepper pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. Truett-Hurst does not pay a dividend. Keurig Dr Pepper pays out 57.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Truett-Hurst and Keurig Dr Pepper’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Truett-Hurst $6.47 million 0.93 -$640,000.00 N/A N/A
Keurig Dr Pepper $7.44 billion 5.58 $586.00 million $1.04 28.40

Keurig Dr Pepper has higher revenue and earnings than Truett-Hurst.

Institutional & Insider Ownership

47.6% of Truett-Hurst shares are held by institutional investors. Comparatively, 13.0% of Keurig Dr Pepper shares are held by institutional investors. 17.1% of Truett-Hurst shares are held by company insiders. Comparatively, 0.4% of Keurig Dr Pepper shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Keurig Dr Pepper beats Truett-Hurst on 9 of the 13 factors compared between the two stocks.

About Truett-Hurst

Truett-Hurst, Inc., together with its subsidiary, H.D.D. LLC, produces, markets, and sells wines primarily in the United States. It produces wine from a range of varietals, including the Pinot Noir, Chardonnay, Sauvignon Blanc, Zinfandel, Petite Sirah, Syrah, and other red blends. The company offers its products primarily under the VML, Truett Hurst, and Svengali brands directly through its tasting rooms, wine clubs, and winery Websites. Truett-Hurst, Inc. was founded in 2007 and is headquartered in Healdsburg, California.

About Keurig Dr Pepper

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally. It operates through four segments: Beverage Concentrates, Packaged Beverages, Latin America Beverages, and Coffee Systems. The Beverage Concentrates segment manufactures and sells beverage concentrates. This segment also manufactures beverage concentrates into syrup. The Packaged Beverages segment manufactures and distributes packaged beverages for own brands, as well as for allied brands; and various private label beverages. The Latin America Beverages segment offers carbonated mineral water, flavored carbonated soft drinks (CSD), bottled water, and vegetable juice. The Coffee Systems segment provides single-serve brewing systems and specialty coffee to home, offices, restaurants, cafeterias, convenience stores, and hotels, as well as produces and sells range of other specialty beverages in K-Cup pods, such as hot and iced teas, hot cocoa, and other beverages. This segment also develops and sells brewer accessories, including pod storage racks, baskets, brewer carrying cases, and other coffee-related equipment and accessories; and provides beans and ground coffee in bags, fractional packages, and cans. The company offers its CSD and non-carbonated beverages products under the Dr Pepper, Canada Dry, Crush, Schweppes, Sunkist soda, 7UP, A&W, Sun Drop, Squirt, RC Cola, Hawaiian Punch, Mott's, Clamato, Bai, Yoo-Hoo, Deja Blue, Core, ReaLemon, Mistic, Vita Coco coconut water, Canada Dry, Big Red, Vernors, Peñafiel, Aguafiel, and Mr and Mrs T mixers brands. It distributes its products through retail channels, including supermarkets, fountains, mass merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains, and dollar stores. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.

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