WallStSmart

Diageo PLC ADR (DEO)vsMGP Ingredients Inc (MGPI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Diageo PLC ADR generates 3700% more annual revenue ($19.80B vs $521.15M). DEO leads profitability with a 12.2% profit margin vs -46.0%. DEO appears more attractively valued with a PEG of 0.79. DEO earns a higher WallStSmart Score of 56/100 (C).

DEO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 8.0Value: 8.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.40

MGPI

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 5.7Quality: 6.5
Piotroski: 3/9Altman Z: 1.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DEOUndervalued (+54.3%)

Margin of Safety

+54.3%

Fair Value

$220.42

Current Price

$80.43

$139.99 discount

UndervaluedFair: $220.42Overvalued
MGPIUndervalued (+10.6%)

Margin of Safety

+10.6%

Fair Value

$29.26

Current Price

$16.51

$12.75 discount

UndervaluedFair: $29.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DEO4 strengths · Avg: 9.0/10
Return on EquityProfitability
51.8%10/10

Every $100 of equity generates 52 in profit

Operating MarginProfitability
31.3%10/10

Strong operational efficiency at 31.3%

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.51B8/10

Generating 1.5B in free cash flow

MGPI1 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Areas to Watch

DEO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
2.9%4/10

2.9% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
69.3x2/10

Trading at 69.3x book value

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

MGPI4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Market CapQuality
$352.63M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-41.2%2/10

ROE of -41.2% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : DEO

The strongest argument for DEO centers on Return on Equity, Operating Margin, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bull Case : MGPI

The strongest argument for MGPI centers on Price/Book. PEG of 1.15 suggests the stock is reasonably priced for its growth.

Bear Case : DEO

The primary concerns for DEO are EPS Growth, Piotroski F-Score, Price/Book. Debt-to-equity of 2.09 is elevated, increasing financial risk.

Bear Case : MGPI

The primary concerns for MGPI are Altman Z-Score, Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

DEO profiles as a declining stock while MGPI is a turnaround play — different risk/reward profiles.

MGPI carries more volatility with a beta of 0.46 — expect wider price swings.

DEO is growing revenue faster at -4.0% — sustainability is the question.

DEO generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

DEO scores higher overall (56/100 vs 46/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Diageo PLC ADR

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.

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MGP Ingredients Inc

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

MGP Ingredients, Inc. produces and supplies distilled spirits and specialty wheat proteins and starch food ingredients. The company is headquartered in Atchison, Kansas.

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