Critical Survey: Treasury Wine Estates (TSRYF) and The Competition

Insider and Institutional Ownership

36.4% of Treasury Wine Estates shares are owned by institutional investors. Comparatively, 36.6% of shares of all “Beverages” companies are owned by institutional investors. 19.1% of shares of all “Beverages” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Treasury Wine Estates and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Treasury Wine Estates	N/A	N/A	-21.67
Treasury Wine Estates Competitors	$50.65 billion	$883.52 million	10.78

Treasury Wine Estates’ rivals have higher revenue and earnings than Treasury Wine Estates. Treasury Wine Estates is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Treasury Wine Estates and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Treasury Wine Estates	N/A	N/A	N/A
Treasury Wine Estates Competitors	-8.02%	-9.28%	0.26%

Dividends

Treasury Wine Estates pays an annual dividend of $0.06 per share and has a dividend yield of 1.8%. Treasury Wine Estates pays out -38.5% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 2.9% and pay out 49.1% of their earnings in the form of a dividend.

Summary

Treasury Wine Estates rivals beat Treasury Wine Estates on 6 of the 9 factors compared.

About Treasury Wine Estates

Treasury Wine Estates Limited operates as a wine company primarily in Australia, the United States, the United Kingdom, and internationally. The company engages in the viticulture and winemaking; and marketing, sale, and distribution of wine. Its wine portfolio includes luxury, premium and commercial wine brands, such as Penfolds, DAOU Vineyards, Wolf Blass, 19 Crimes, St Hubert’s The Stag, Lindeman’s, Squealing pig, Blossom Hill, Frank Family Vineyards, Pepperjack, Wynns, Matua, Seppelt, Beringer, Etude, Sterling Vineyards, Beaulieu Vineyard, Stags’ Leap, Beringer Bros, and Castello di Gabbiano. The company also provides contract bottling services to third parties; and sells grape and bulk wine. It owns and leases vineyards in Australia and New Zealand, California, France, and Italy. The company markets and sells its products to distributors, wholesalers, retails chains, independent retailers, and on-premise outlets, as well as directly to consumers. The company was founded in 1843 and is headquartered in Melbourne, Australia.