Diageo (NYSE:DEO – Get Free Report) and Arcadia Biosciences (NASDAQ:RKDA – Get Free Report) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Volatility and Risk
Diageo has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Arcadia Biosciences has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.
Valuation and Earnings
This table compares Diageo and Arcadia Biosciences”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diageo | $19.64 billion | 2.71 | $1.74 billion | N/A | N/A |
| Arcadia Biosciences | $4.86 million | 0.31 | -$2.34 million | ($4.56) | -0.14 |
Diageo has higher revenue and earnings than Arcadia Biosciences.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Diageo and Arcadia Biosciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diageo | 2 | 4 | 6 | 0 | 2.33 |
| Arcadia Biosciences | 1 | 0 | 0 | 0 | 1.00 |
Diageo presently has a consensus price target of $106.25, suggesting a potential upside of 11.28%. Given Diageo’s stronger consensus rating and higher probable upside, equities analysts plainly believe Diageo is more favorable than Arcadia Biosciences.
Insider and Institutional Ownership
9.0% of Diageo shares are held by institutional investors. Comparatively, 17.7% of Arcadia Biosciences shares are held by institutional investors. 8.2% of Arcadia Biosciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Diageo and Arcadia Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diageo | N/A | N/A | N/A |
| Arcadia Biosciences | -234.53% | -144.61% | -88.15% |
Summary
Diageo beats Arcadia Biosciences on 9 of the 12 factors compared between the two stocks.
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.
About Arcadia Biosciences
Arcadia Biosciences, Inc. produces and markets plant-based food and beverage products in the United States. The company develops crop improvements primarily in wheat to enhance farm economics by improving the performance of crops in the field, as well as their value as food ingredients. Its food, beverage, and body case products include GoodWheat, Zola coconut water, ProVault topical pain relief, and SoulSpring. The company was incorporated in 2002 and is headquartered in Dallas, Texas.
Receive News & Ratings for Diageo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Diageo and related companies with MarketBeat.com's FREE daily email newsletter.
