Contrasting Dr Pepper Snapple Group (DPS) & Long Island Iced Tea Corp. (LTEA)
Dr Pepper Snapple Group (NYSE: DPS) and Long Island Iced Tea Corp. (NASDAQ:LTEA) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Volatility & Risk
Dr Pepper Snapple Group has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Long Island Iced Tea Corp. has a beta of -10.74, indicating that its share price is 1,174% less volatile than the S&P 500.
Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 2.6%. Long Island Iced Tea Corp. does not pay a dividend. Dr Pepper Snapple Group pays out 55.6% of its earnings in the form of a dividend. Long Island Iced Tea Corp. has increased its dividend for 7 consecutive years.
Valuation & Earnings
This table compares Dr Pepper Snapple Group and Long Island Iced Tea Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dr Pepper Snapple Group||$6.57 billion||2.43||$1.58 billion||$4.17||21.03|
|Long Island Iced Tea Corp.||$4.79 million||4.81||-$11.97 million||($1.90)||-1.33|
Dr Pepper Snapple Group has higher revenue and earnings than Long Island Iced Tea Corp.. Long Island Iced Tea Corp. 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.
This table compares Dr Pepper Snapple Group and Long Island Iced Tea Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dr Pepper Snapple Group||11.73%||38.28%||8.50%|
|Long Island Iced Tea Corp.||-305.26%||-349.13%||-202.48%|
Insider & Institutional Ownership
90.0% of Dr Pepper Snapple Group shares are owned by institutional investors. Comparatively, 1.1% of Long Island Iced Tea Corp. shares are owned by institutional investors. 0.6% of Dr Pepper Snapple Group shares are owned by insiders. Comparatively, 18.1% of Long Island Iced Tea Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Dr Pepper Snapple Group and Long Island Iced Tea Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dr Pepper Snapple Group||1||6||5||0||2.33|
|Long Island Iced Tea Corp.||0||0||0||0||N/A|
Dr Pepper Snapple Group currently has a consensus target price of $98.80, suggesting a potential upside of 12.68%. Given Dr Pepper Snapple Group’s higher possible upside, analysts plainly believe Dr Pepper Snapple Group is more favorable than Long Island Iced Tea Corp..
Dr Pepper Snapple Group beats Long Island Iced Tea Corp. on 11 of the 15 factors compared between the two stocks.
Dr Pepper Snapple Group Company Profile
Dr Pepper Snapple Group, Inc. is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Mexico and Canada. The Company offers a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers. The Company’s segments include Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company’s brand portfolio includes CSD brands, such as Dr Pepper, Canada Dry, Penafiel, Squirt, 7UP, Crush, A&W, Sunkist soda and Schweppes, and NCB brands, such as Snapple, Hawaiian Punch, Mott’s and Clamato. The Company’s NCB brands include Snapple, Hawaiian Punch, Mott’s, FIJI mineral water, Clamato, Yoo-Hoo, Deja Blue, Bai Brands, ReaLemon, AriZona tea, Vita Coco coconut water, Mr and Mrs T mixers, BodyArmor, Nantucket Nectars, Garden Cocktail, Mistic and Rose’s.
Long Island Iced Tea Corp. Company Profile
Long Island Iced Tea Corp. is a holding company operating through its subsidiary, Long Island Brand Beverages, LLC (LIBB). The Company is engaged in the production and distribution of Non-Alcoholic Ready-to-Drink (NARTD) iced tea in the beverage industry. It is organized around its brand, Long Island Iced Tea. Long Island Iced Tea is sold primarily on the East Coast of the United States through a network of national and regional retail chains and distributors. The Company produces brewed tea, using black tea leaves, purified water and natural cane sugar or sucralose. The Company’s Long Island Iced Tea’s flavors include lemon, peach, raspberry, guava, mango, diet lemon, diet peach, sweet tea, green tea and honey, and half tea and half lemonade. It also offers lower calorie iced tea in over 12 ounce bottles. The lower calorie flavor options include mango, raspberry and peach. The Company’s products include All-Natural Tea, Diet Tea, Fruit-Flavored Tea, Organic Tea and Herbal Tea.
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