ABF vs. TSCO, IMB, BNZL, CCH, RKT, SBRY, BME, BATS, DGE, and TATE
Should you be buying Associated British Foods stock or one of its competitors? The main competitors of Associated British Foods include Tesco (TSCO), Imperial Brands (IMB), Bunzl (BNZL), Coca-Cola HBC (CCH), Reckitt Benckiser Group (RKT), J Sainsbury (SBRY), B&M European Value Retail (BME), British American Tobacco (BATS), Diageo (DGE), and Tate & Lyle (TATE). These companies are all part of the "consumer defensive" sector.
Tesco (LON:TSCO) and Associated British Foods (LON:ABF) are both large-cap consumer defensive companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, media sentiment, institutional ownership, risk, profitability, community ranking and earnings.
Tesco pays an annual dividend of GBX 11 per share and has a dividend yield of 3.9%. Associated British Foods pays an annual dividend of GBX 47 per share and has a dividend yield of 2.0%. Tesco pays out 5,500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Associated British Foods pays out 3,507.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
65.1% of Tesco shares are owned by institutional investors. Comparatively, 18.9% of Associated British Foods shares are owned by institutional investors. 2.1% of Tesco shares are owned by company insiders. Comparatively, 58.6% of Associated British Foods shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Tesco currently has a consensus price target of GBX 308.33, suggesting a potential upside of 9.26%. Associated British Foods has a consensus price target of GBX 2,041.67, suggesting a potential downside of 13.96%. Given Associated British Foods' stronger consensus rating and higher possible upside, analysts plainly believe Tesco is more favorable than Associated British Foods.
In the previous week, Tesco had 14 more articles in the media than Associated British Foods. MarketBeat recorded 17 mentions for Tesco and 3 mentions for Associated British Foods. Associated British Foods' average media sentiment score of 0.61 beat Tesco's score of 0.12 indicating that Tesco is being referred to more favorably in the media.
Associated British Foods has a net margin of 5.29% compared to Associated British Foods' net margin of 2.13%. Associated British Foods' return on equity of 11.11% beat Tesco's return on equity.
Tesco has higher revenue and earnings than Associated British Foods. Tesco is trading at a lower price-to-earnings ratio than Associated British Foods, indicating that it is currently the more affordable of the two stocks.
Tesco received 173 more outperform votes than Associated British Foods when rated by MarketBeat users. However, 73.00% of users gave Associated British Foods an outperform vote while only 61.60% of users gave Tesco an outperform vote.
Tesco has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Associated British Foods has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Summary
Tesco beats Associated British Foods on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ABF and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of LON 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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