BF.B vs. STZ, DEO, KDP, ABEV, COCO, BRCC, NAPA, WEST, WVVI, and VWE
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), Willamette Valley Vineyards (WVVI), and Vintage Wine Estates (VWE). 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 stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, community ranking, analyst recommendations, risk and media sentiment.
Brown-Forman pays an annual dividend of $0.87 per share and has a dividend yield of 1.9%. 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 30.1% 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.
Constellation Brands has higher revenue and earnings than Brown-Forman. Constellation Brands is trading at a lower price-to-earnings ratio than Brown-Forman, indicating that it is currently the more affordable of the two stocks.
Brown-Forman has a net margin of 24.51% compared to Constellation Brands' net margin of 22.70%. Brown-Forman's return on equity of 30.22% beat Constellation Brands' return on equity.
Brown-Forman currently has a consensus price target of $65.63, indicating a potential upside of 45.32%. Constellation Brands has a consensus price target of $300.28, indicating a potential upside of 19.16%. Given Brown-Forman's higher probable upside, research analysts clearly believe Brown-Forman is more favorable than Constellation Brands.
Constellation Brands received 550 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.42% of users gave Constellation Brands an outperform vote while only 54.09% of users gave Brown-Forman an outperform vote.
34.7% of Brown-Forman shares are owned by institutional investors. Comparatively, 77.3% of Constellation Brands shares are owned by institutional investors. 2.7% of Brown-Forman shares are owned by company insiders. Comparatively, 12.2% of Constellation Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
In the previous week, Constellation Brands had 9 more articles in the media than Brown-Forman. MarketBeat recorded 12 mentions for Constellation Brands and 3 mentions for Brown-Forman. Constellation Brands' average media sentiment score of 1.04 beat Brown-Forman's score of 0.56 indicating that Constellation Brands is being referred to more favorably in the news media.
Brown-Forman has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.
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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