Contrasting Epsium Enterprise (NASDAQ:EPSM) & Diageo (NYSE:DEO)

Epsium Enterprise (NASDAQ:EPSM) and Diageo (NYSE:DEO) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of recent recommendations for Epsium Enterprise and Diageo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Epsium Enterprise	1	0	0	0	1.00
Diageo	2	5	6	0	2.31

Diageo has a consensus target price of $106.25, indicating a potential upside of 20.68%. Given Diageo’s stronger consensus rating and higher probable upside, analysts clearly believe Diageo is more favorable than Epsium Enterprise.

Insider & Institutional Ownership

9.0% of Diageo shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Epsium Enterprise has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Diageo has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares Epsium Enterprise and Diageo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Epsium Enterprise	N/A	N/A	N/A
Diageo	N/A	N/A	N/A

Earnings & Valuation

This table compares Epsium Enterprise and Diageo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Epsium Enterprise	$5.12 million	3.67	-$1.50 million	N/A	N/A
Diageo	$20.25 billion	2.42	$2.35 billion	N/A	N/A

Diageo has higher revenue and earnings than Epsium Enterprise.

Summary

Diageo beats Epsium Enterprise on 6 of the 8 factors compared between the two stocks.

About Epsium Enterprise

We are a holding company incorporated under the laws of British Virgin Islands. As a holding company with no material operation of its own, we conduct substantially all our operations through an indirect Macau subsidiary, Companhia de Comercio Luz Limitada in Macau, or Luz. Luz is an 80%-owned subsidiary of Epsium Enterprise Limited in Hong Kong, or Epsium HK. Mr. Son I Tam, our CEO, Chairman, principal shareholder, and the founder of Epsium and Luz directly holds (i) 89.996% ownership interest in Epsium, (ii) 19% interest in Epsium HK, and (iii) 20% ownership interest in Luz. Luz is an import trading and wholesaler of primarily alcoholic beverages in Macau. Through Luz, we import and sell a broad range of premium beverages, primarily alcoholic beverages and, in 2022, a small quantity of tea and fruit juice. The alcoholic beverages we sell include Chinese liquor, French cognac, Scottish whiskey, fine wine, Champagne, and other miscellaneous beverage alcohol. Sales of Chinese liquor is by far our most significant operations, and we are a top wholesaler of high-end Chinese liquor in Macau. We operate only in Macau. Our principal executive office is located in Macau, SAR China.

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.