BF.B vs. STZ, DEO, KDP, ABEV, COCO, BRCC, NAPA, WEST, VWE, and WVVI
Should you be buying Brown-Forman stock or one of its competitors? The main competitors of Brown-Forman include Constellation Brands (STZ), Diageo (DEO), Keurig Dr Pepper (KDP), Ambev (ABEV), Vita Coco (COCO), BRC (BRCC), Duckhorn Portfolio (NAPA), Westrock Coffee (WEST), Vintage Wine Estates (VWE), and Willamette Valley Vineyards (WVVI). These companies are all part of the "beverages" industry.
Brown-Forman (NYSE:BF.B) and Constellation Brands (NYSE:STZ) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, community ranking, risk, analyst recommendations, media sentiment, dividends, profitability, valuation and earnings.
Brown-Forman has a net margin of 24.51% compared to Constellation Brands' net margin of 16.13%. Brown-Forman's return on equity of 30.61% beat Constellation Brands' return on equity.
Brown-Forman pays an annual dividend of $0.87 per share and has a dividend yield of 2.0%. Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 1.6%. Brown-Forman pays out 40.7% of its earnings in the form of a dividend. Constellation Brands pays out 43.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brown-Forman is clearly the better dividend stock, given its higher yield and lower payout ratio.
34.7% of Brown-Forman shares are held by institutional investors. Comparatively, 77.3% of Constellation Brands shares are held by institutional investors. 2.7% of Brown-Forman shares are held by company insiders. Comparatively, 16.2% of Constellation Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Brown-Forman has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Constellation Brands received 542 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.31% of users gave Constellation Brands an outperform vote while only 54.09% of users gave Brown-Forman an outperform vote.
Constellation Brands has higher revenue and earnings than Brown-Forman. Brown-Forman is trading at a lower price-to-earnings ratio than Constellation Brands, indicating that it is currently the more affordable of the two stocks.
In the previous week, Constellation Brands had 4 more articles in the media than Brown-Forman. MarketBeat recorded 8 mentions for Constellation Brands and 4 mentions for Brown-Forman. Constellation Brands' average media sentiment score of 1.04 beat Brown-Forman's score of 0.75 indicating that Constellation Brands is being referred to more favorably in the news media.
Brown-Forman presently has a consensus target price of $65.68, suggesting a potential upside of 48.18%. Constellation Brands has a consensus target price of $298.20, suggesting a potential upside of 18.81%. Given Brown-Forman's higher probable upside, research analysts clearly believe Brown-Forman is more favorable than Constellation Brands.
Summary
Constellation Brands beats Brown-Forman on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BF.B and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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