Canopy Growth vs Constellation Brands Which Is More Favorable?

Canopy Growth and Constellation Brands are two prominent companies in the cannabis industry, with Canopy Growth specializing in the production and distribution of cannabis products, and Constellation Brands known for its wide range of alcoholic beverages. In recent years, Constellation Brands made a significant investment in Canopy Growth, leading to a strategic partnership between the two companies. This move has caused fluctuations in both Canopy Growth and Constellation Brands stocks, as investors closely monitor the impact of this collaboration on their respective performance in the market.

Canopy Growth or Constellation Brands?

When comparing Canopy Growth and Constellation Brands, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Canopy Growth and Constellation Brands.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Canopy Growth has a dividend yield of -%, while Constellation Brands has a dividend yield of 1.64%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canopy Growth reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Constellation Brands reports a 5-year dividend growth of 4.84% year and a payout ratio of 119.90%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Canopy Growth P/E ratio at -0.69 and Constellation Brands's P/E ratio at 75.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canopy Growth P/B ratio is 0.77 while Constellation Brands's P/B ratio is 5.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canopy Growth has seen a 5-year revenue growth of 3.36%, while Constellation Brands's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canopy Growth's ROE at -108.18% and Constellation Brands's ROE at 6.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.11 for Canopy Growth and $238.18 for Constellation Brands. Over the past year, Canopy Growth's prices ranged from $2.75 to $14.92, with a yearly change of 441.56%. Constellation Brands's prices fluctuated between $224.76 and $274.87, with a yearly change of 22.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.