DEO vs. ABEV, KDP, STZ, BF.B, PEP, KO, BUD, MDLZ, BTI, and MO
Should you be buying Diageo stock or one of its competitors? The main competitors of Diageo include Ambev (ABEV), Keurig Dr Pepper (KDP), Constellation Brands (STZ), Brown-Forman (BF.B), PepsiCo (PEP), Coca-Cola (KO), Anheuser-Busch InBev SA/NV (BUD), Mondelez International (MDLZ), British American Tobacco (BTI), and Altria Group (MO). These companies are all part of the "consumer staples" sector.
Diageo vs.
Diageo (NYSE:DEO) and Ambev (NYSE:ABEV) are both large-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their community ranking, earnings, profitability, media sentiment, valuation, risk, dividends, analyst recommendations and institutional ownership.
Diageo pays an annual dividend of $3.04 per share and has a dividend yield of 1.7%. Ambev pays an annual dividend of $0.12 per share and has a dividend yield of 4.1%. Diageo pays out 34.5% of its earnings in the form of a dividend. Ambev pays out 66.7% 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.
Ambev received 70 more outperform votes than Diageo when rated by MarketBeat users. However, 61.17% of users gave Diageo an outperform vote while only 60.60% of users gave Ambev an outperform vote.
Ambev has a consensus target price of $3.74, suggesting a potential upside of 28.52%. Given Diageo's higher possible upside, analysts clearly believe Diageo is more favorable than Ambev.
Diageo has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Ambev has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Diageo has higher revenue and earnings than Ambev. Ambev is trading at a lower price-to-earnings ratio than Diageo, indicating that it is currently the more affordable of the two stocks.
Ambev has a net margin of 18.00% compared to Diageo's net margin of 0.00%. Ambev's return on equity of 17.44% beat Diageo's return on equity.
In the previous week, Ambev had 2 more articles in the media than Diageo. MarketBeat recorded 5 mentions for Ambev and 3 mentions for Diageo. Diageo's average media sentiment score of 1.03 beat Ambev's score of 0.74 indicating that Diageo is being referred to more favorably in the media.
9.0% of Diageo shares are owned by institutional investors. Comparatively, 8.8% of Ambev shares are owned by institutional investors. 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.
Summary
Diageo beats Ambev on 10 of the 19 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding DEO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartMedia Sentiment Over Time
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.
Skip Chart
Related Companies and Tools