WallStSmart

Diageo PLC ADR (DEO)vsMonster Beverage Corp (MNST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diageo PLC ADR generates 125% more annual revenue ($19.80B vs $8.79B). MNST leads profitability with a 23.1% profit margin vs 12.2%. DEO appears more attractively valued with a PEG of 0.79. MNST earns a higher WallStSmart Score of 69/100 (B-).

DEO

Buy

56

out of 100

Grade: C

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

MNST

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 5.3Quality: 7.8
Piotroski: 4/9Altman Z: 6.29
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
MNSTUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$286.02

Current Price

$88.54

$197.48 discount

UndervaluedFair: $286.02Overvalued

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

MNST6 strengths · Avg: 9.2/10
Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

Altman Z-ScoreHealth
6.2910/10

Safe zone — low bankruptcy risk

Market CapQuality
$87.08B9/10

Large-cap with strong market position

Return on EquityProfitability
23.3%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

Revenue GrowthGrowth
26.9%8/10

Revenue surging 26.9% year-over-year

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%

MNST3 concerns · Avg: 2.7/10
Price/BookValuation
9.9x4/10

Trading at 9.9x book value

PEG RatioValuation
2.562/10

Expensive relative to growth rate

P/E RatioValuation
43.0x2/10

Premium valuation, high expectations priced in

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 : MNST

The strongest argument for MNST centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 23.1% and operating margin at 31.0%. Revenue growth of 26.9% demonstrates continued momentum.

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 : MNST

The primary concerns for MNST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 43.0x leaves little room for execution misses.

Key Dynamics to Monitor

DEO profiles as a declining stock while MNST is a growth play — different risk/reward profiles.

MNST carries more volatility with a beta of 0.50 — expect wider price swings.

MNST is growing revenue faster at 26.9% — sustainability is the question.

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

Bottom Line

MNST scores higher overall (69/100 vs 56/100), backed by strong 23.1% margins and 26.9% revenue growth. DEO offers better value entry with a 54.3% margin of safety. Both earn "Strong Buy" and "Buy" 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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Monster Beverage Corp

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Monster Beverage Corporation is an American beverage company that manufactures energy drinks including Monster Energy, Relentless and Burn.

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