Diageo (DEO) Competitors

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.

Is DEO or ABEV a better dividend stock?

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.

Does the MarketBeat Community favor DEO or ABEV?

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.

Company	Underperform	Outperform
Diageo	Outperform Votes 293 61.17%	Underperform Votes 186 38.83%
Ambev	Outperform Votes 363 60.60%	Underperform Votes 236 39.40%

Do analysts rate DEO or ABEV?

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.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	1 Sell rating(s)	7 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.10
Ambev	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	3.00

Which has more volatility and risk, DEO or ABEV?

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.

Which has higher earnings and valuation, DEO or ABEV?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diageo	$19.43 billion	5.05	$4.32 billion	$8.82	19.74
Ambev	$15.44 billion	2.97	$2.80 billion	$0.18	16.17

Is DEO or ABEV more profitable?

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.

Company	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Ambev	18.00%	17.44%	11.02%

Does the media refer more to DEO or ABEV?

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.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diageo	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Ambev	1 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

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

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.