Constellation Brands vs Canopy Growth Which Is a Better Investment?

Constellation Brands and Canopy Growth are two major players in the cannabis industry, with Constellation Brands being a leading producer of alcoholic beverages and Canopy Growth being one of the largest cannabis companies in the world. Both companies have seen significant growth in their stock prices in recent years as they have expanded their operations and entered new markets. Investors are closely watching how these two companies will continue to compete and innovate in the ever-evolving cannabis industry.

Constellation Brands or Canopy Growth?

When comparing Constellation Brands and Canopy Growth, 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 Constellation Brands and Canopy Growth.

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. Constellation Brands has a dividend yield of 1.64%, while Canopy Growth has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Constellation Brands reports a 5-year dividend growth of 4.84% year and a payout ratio of 119.90%. On the other hand, Canopy Growth reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Constellation Brands P/E ratio at 75.18 and Canopy Growth's P/E ratio at -0.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Constellation Brands P/B ratio is 5.54 while Canopy Growth's P/B ratio is 0.77.

Growth Investors:

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

Retail Investors:

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