Diageo (DEO) Competitors

Diageo (NYSE:DEO) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, media sentiment, valuation and earnings.

Which has more risk and volatility, DEO or BUD?

Diageo has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Which has better earnings & valuation, DEO or BUD?

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Diageo. Diageo is trading at a lower price-to-earnings ratio than Anheuser-Busch InBev SA/NV, 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
Diageo	$20.27B	2.84	$3.87B	$6.85	15.08
Anheuser-Busch InBev SA/NV	$59.77B	2.04	$5.86B	$3.45	19.69

Does the media prefer DEO or BUD?

In the previous week, Diageo had 24 more articles in the media than Anheuser-Busch InBev SA/NV. MarketBeat recorded 30 mentions for Diageo and 6 mentions for Anheuser-Busch InBev SA/NV. Anheuser-Busch InBev SA/NV's average media sentiment score of 1.22 beat Diageo's score of 0.58 indicating that Anheuser-Busch InBev SA/NV is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diageo	14 Very Positive mention(s)	3 Positive mention(s)	8 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Positive
Anheuser-Busch InBev SA/NV	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate DEO or BUD?

Diageo presently has a consensus price target of $129.00, suggesting a potential upside of 24.88%. Anheuser-Busch InBev SA/NV has a consensus price target of $71.50, suggesting a potential upside of 5.27%. Given Diageo's higher probable upside, research analysts clearly believe Diageo is more favorable than Anheuser-Busch InBev SA/NV.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	1 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.38
Anheuser-Busch InBev SA/NV	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	3 Strong Buy rating(s)	3.20

Is DEO or BUD a better dividend stock?

Diageo pays an annual dividend of $3.18 per share and has a dividend yield of 3.1%. Anheuser-Busch InBev SA/NV pays an annual dividend of $0.85 per share and has a dividend yield of 1.3%. Diageo pays out 46.4% of its earnings in the form of a dividend. Anheuser-Busch InBev SA/NV pays out 24.6% 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.

Do institutionals & insiders have more ownership in DEO or BUD?

9.0% of Diageo shares are held by institutional investors. Comparatively, 5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Is DEO or BUD more profitable?

Anheuser-Busch InBev SA/NV has a net margin of 11.74% compared to Diageo's net margin of 0.00%. Anheuser-Busch InBev SA/NV's return on equity of 16.09% beat Diageo's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Anheuser-Busch InBev SA/NV	11.74%	16.09%	6.86%

Summary

Anheuser-Busch InBev SA/NV beats Diageo on 13 of the 19 factors compared between the two stocks.