Diageo (DEO) Competitors

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

Do institutionals & insiders hold more shares of BUD or DEO?

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

Is BUD or DEO 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
Anheuser-Busch InBev SA/NV	11.74%	16.09%	6.86%
Diageo	N/A	N/A	N/A

Which has more risk and volatility, BUD or DEO?

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

Does the media prefer BUD or DEO?

In the previous week, Diageo had 7 more articles in the media than Anheuser-Busch InBev SA/NV. MarketBeat recorded 18 mentions for Diageo and 11 mentions for Anheuser-Busch InBev SA/NV. Anheuser-Busch InBev SA/NV's average media sentiment score of 1.17 beat Diageo's score of 1.07 indicating that Anheuser-Busch InBev SA/NV is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Anheuser-Busch InBev SA/NV	7 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Diageo	13 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is BUD or DEO a better dividend stock?

Anheuser-Busch InBev SA/NV pays an annual dividend of $0.85 per share and has a dividend yield of 1.3%. Diageo pays an annual dividend of $3.18 per share and has a dividend yield of 3.0%. Anheuser-Busch InBev SA/NV pays out 24.6% of its earnings in the form of a dividend. Diageo pays out 46.4% 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 analysts rate BUD or DEO?

Anheuser-Busch InBev SA/NV presently has a consensus target price of $71.50, indicating a potential upside of 5.76%. Diageo has a consensus target price of $129.00, indicating a potential upside of 22.37%. Given Diageo's higher probable upside, analysts plainly believe Diageo is more favorable than Anheuser-Busch InBev SA/NV.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anheuser-Busch InBev SA/NV	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	3 Strong Buy rating(s)	3.20
Diageo	2 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.22

Which has higher valuation & earnings, BUD or DEO?

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
Anheuser-Busch InBev SA/NV	$59.77B	2.03	$5.86B	$3.45	19.60
Diageo	$20.21B	2.90	$3.87B	$6.85	15.39

Summary

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