Critical Contrast: Remy Cointreau (REMYY) & MGP Ingredients (MGPI)

Critical Contrast: Remy Cointreau (REMYY) & MGP Ingredients (MGPI)

Insider & Institutional Ownership

MGP Ingredients (NASDAQ: MGPI) and Remy Cointreau (OTCMKTS:REMYY) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

95.1% of MGP Ingredients shares are owned by institutional investors. Comparatively, 0.0% of Remy Cointreau shares are owned by institutional investors. 22.2% of MGP Ingredients shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares MGP Ingredients and Remy Cointreau’s net margins, return on equity and return on assets.

Dividends

MGP Ingredients pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. Remy Cointreau pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. MGP Ingredients pays out 17.1% of its earnings in the form of a dividend. Remy Cointreau pays out 46.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares MGP Ingredients and Remy Cointreau’s top-line revenue, earnings per share (EPS) and valuation.

Remy Cointreau has higher revenue and earnings than MGP Ingredients. Remy Cointreau is trading at a lower price-to-earnings ratio than MGP Ingredients, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

MGP Ingredients has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Remy Cointreau has a beta of -0.63, meaning that its stock price is 163% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for MGP Ingredients and Remy Cointreau, as reported by MarketBeat.

MGP Ingredients presently has a consensus target price of $89.00, suggesting a potential downside of 0.18%. Given MGP Ingredients’ stronger consensus rating and higher possible upside, equities analysts clearly believe MGP Ingredients is more favorable than Remy Cointreau.

Summary

MGP Ingredients beats Remy Cointreau on 12 of the 16 factors compared between the two stocks.

MGP Ingredients Company Profile

MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, and specialty wheat proteins and starch food ingredients. It operates in two segments, Distillery Products and Ingredient Solutions. The Distillery Products segment provides food grade alcohol for beverage applications that include bourbon and rye whiskeys, as well as grain neutral spirits, including vodka and gin; and food grade industrial alcohol, which is used as an ingredient in foods, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also provides distillery co-products, such as distillers feed, fuel grade alcohol, and corn oil; and warehouse services, including barrel put away, storage, and retrieval services. The Ingredient Solutions segment provides specialty wheat starches for food applications under the trademarks Fibersym Resistant Starch series, FiberRite RW Resistant Starch, Pregel Instant Starch series, and Midsol Cook-up Starch series; and specialty wheat proteins, commodity wheat starch, and commodity wheat proteins. The company sells its products directly or through distributors to the manufacturers and processors of finished packaged goods or to bakeries primarily in the United States, Japan, Thailand, and Canada. MGP Ingredients, Inc. was founded in 1941 and is headquartered in Atchison, Kansas.

Remy Cointreau Company Profile

Rémy Cointreau SA, together with its subsidiaries, produces and distributes liqueurs and spirits. It operates through Rémy Martin, Liqueurs & Spirits, and Partner Brands segments. The company produces a range of cognacs under the Rémy Martin and Louis XIII brands. It offers liqueurs and spirits primarily under the Cointreau, Metaxa, Mount Gay, St-Rémy, The Botanist, Bruichladdich, Port Charlotte, Octomore, Westland, and Domaine des Hautes Glaces brands. The company markets its products through distributors, agents, and wholesalers in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. Rémy Cointreau SA was founded in 1724 and is headquartered in Cognac, France.

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