Britvic (LON:BVIC) and PZ Cussons (LON:PZC) are both consumer defensive companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Profitability
This table compares Britvic and PZ Cussons' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Britvic | N/A | N/A | N/A |
PZ Cussons | N/A | N/A | N/A |
Dividends
Britvic pays an annual dividend of GBX 22 per share and has a dividend yield of 2.5%. PZ Cussons pays an annual dividend of GBX 6 per share and has a dividend yield of 2.2%. Britvic pays out 62.1% of its earnings in the form of a dividend. PZ Cussons pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Britvic is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Britvic and PZ Cussons, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Britvic | 0 | 3 | 9 | 0 | 2.75 |
PZ Cussons | 0 | 1 | 1 | 0 | 2.50 |
Britvic currently has a consensus target price of GBX 930, indicating a potential upside of 7.08%. PZ Cussons has a consensus target price of GBX 300, indicating a potential upside of 10.09%. Given PZ Cussons' higher possible upside, analysts plainly believe PZ Cussons is more favorable than Britvic.
Valuation & Earnings
This table compares Britvic and PZ Cussons' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Britvic | £1.41 billion | 1.64 | N/A | GBX 35.40 | 24.53 |
PZ Cussons | £616.10 million | 1.90 | N/A | GBX 0.90 | 302.78 |
Britvic is trading at a lower price-to-earnings ratio than PZ Cussons, indicating that it is currently the more affordable of the two stocks.
Summary
Britvic beats PZ Cussons on 6 of the 9 factors compared between the two stocks.