DEO vs. KO, PEP, STZ, KDP, ABEV, BF.B, COCO, BRCC, NAPA, and WEST
Should you be buying Diageo stock or one of its competitors? The main competitors of Diageo include Coca-Cola (KO), PepsiCo (PEP), Constellation Brands (STZ), Keurig Dr Pepper (KDP), Ambev (ABEV), Brown-Forman (BF.B), Vita Coco (COCO), BRC (BRCC), Duckhorn Portfolio (NAPA), and Westrock Coffee (WEST). These companies are all part of the "beverages" industry.
Diageo (NYSE:DEO) and Coca-Cola (NYSE:KO) 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 risk, valuation, analyst recommendations, profitability, media sentiment, earnings, community ranking, dividends and institutional ownership.
9.0% of Diageo shares are held by institutional investors. Comparatively, 70.3% of Coca-Cola shares are held by institutional investors. 1.0% of Coca-Cola shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Diageo has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
Diageo presently has a consensus price target of $166.37, indicating a potential upside of 25.63%. Coca-Cola has a consensus price target of $70.25, indicating a potential upside of 4.77%. Given Diageo's higher probable upside, equities analysts plainly believe Diageo is more favorable than Coca-Cola.
Coca-Cola has a net margin of 22.92% compared to Diageo's net margin of 0.00%. Coca-Cola's return on equity of 43.62% beat Diageo's return on equity.
Diageo pays an annual dividend of $3.22 per share and has a dividend yield of 2.4%. Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 2.9%. Coca-Cola pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Coca-Cola received 891 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 67.75% of users gave Coca-Cola an outperform vote while only 59.15% of users gave Diageo an outperform vote.
Coca-Cola has higher revenue and earnings than Diageo.
In the previous week, Coca-Cola had 72 more articles in the media than Diageo. MarketBeat recorded 81 mentions for Coca-Cola and 9 mentions for Diageo. Coca-Cola's average media sentiment score of 0.61 beat Diageo's score of 0.43 indicating that Coca-Cola is being referred to more favorably in the news media.
Summary
Coca-Cola beats Diageo on 15 of the 18 factors compared between the two stocks.
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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.
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.
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