Brown-Forman (BF.B) Competitors

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 profitability, risk, earnings, analyst recommendations, valuation, dividends, community ranking, media sentiment and institutional ownership.

Do insiders and institutionals have more ownership in BF.B or STZ?

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, large money managers and hedge funds believe a company will outperform the market over the long term.

Do analysts rate BF.B or STZ?

Brown-Forman presently has a consensus price target of $43.06, indicating a potential upside of 24.28%. Constellation Brands has a consensus price target of $225.74, indicating a potential upside of 18.80%. Given Brown-Forman's higher possible upside, analysts clearly believe Brown-Forman is more favorable than Constellation Brands.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brown-Forman	3 Sell rating(s)	5 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.17
Constellation Brands	0 Sell rating(s)	9 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.55

Is BF.B or STZ more profitable?

Brown-Forman has a net margin of 24.61% compared to Constellation Brands' net margin of 6.27%. Brown-Forman's return on equity of 28.83% beat Constellation Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Brown-Forman	24.61%	28.83%	12.19%
Constellation Brands	6.27%	26.55%	10.03%

Which has more volatility and risk, BF.B or STZ?

Brown-Forman has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Is BF.B or STZ a better dividend stock?

Brown-Forman pays an annual dividend of $0.90 per share and has a dividend yield of 2.6%. Constellation Brands pays an annual dividend of $4.08 per share and has a dividend yield of 2.1%. Brown-Forman pays out 43.1% of its earnings in the form of a dividend. Constellation Brands pays out -800.0% 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 raised its dividend for 5 consecutive years.

Does the MarketBeat Community believe in BF.B or STZ?

Constellation Brands received 588 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.36% of users gave Constellation Brands an outperform vote while only 53.47% of users gave Brown-Forman an outperform vote.

Company	Underperform	Outperform
Brown-Forman	Outperform Votes 362 53.47%	Underperform Votes 315 46.53%
Constellation Brands	Outperform Votes 950 64.36%	Underperform Votes 526 35.64%

Does the media prefer BF.B or STZ?

In the previous week, Constellation Brands had 25 more articles in the media than Brown-Forman. MarketBeat recorded 26 mentions for Constellation Brands and 1 mentions for Brown-Forman. Constellation Brands' average media sentiment score of 1.23 beat Brown-Forman's score of 0.40 indicating that Constellation Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Brown-Forman	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Constellation Brands	20 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings & valuation, BF.B or STZ?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brown-Forman	$4.05B	4.05	$1.02B	$2.09	16.58
Constellation Brands	$10.21B	3.31	$1.73B	-$0.51	-372.59

Summary

Constellation Brands beats Brown-Forman on 14 of the 22 factors compared between the two stocks.