BF.B vs. STZ, DEO, KDP, ABEV, COCO, BRCC, WEST, NAPA, WVVI, and VWE
Should you be buying Brown-Forman stock or one of its competitors? The main competitors of Brown-Forman include Constellation Brands (STZ), Diageo (DEO), Keurig Dr Pepper (KDP), Ambev (ABEV), Vita Coco (COCO), BRC (BRCC), Westrock Coffee (WEST), Duckhorn Portfolio (NAPA), Willamette Valley Vineyards (WVVI), and Vintage Wine Estates (VWE). These companies are all part of the "beverages" industry.
Constellation Brands (NYSE:STZ) and Brown-Forman (NYSE:BF.B) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, community ranking, profitability, risk, analyst recommendations, dividends and media sentiment.
77.3% of Constellation Brands shares are owned by institutional investors. Comparatively, 34.7% of Brown-Forman shares are owned by institutional investors. 16.2% of Constellation Brands shares are owned by company insiders. Comparatively, 2.7% of Brown-Forman shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Brown-Forman has a net margin of 22.65% compared to Brown-Forman's net margin of 16.13%. Constellation Brands' return on equity of 29.01% beat Brown-Forman's return on equity.
Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 1.6%. Brown-Forman pays an annual dividend of $0.87 per share and has a dividend yield of 1.9%. Constellation Brands pays out 43.1% of its earnings in the form of a dividend. Brown-Forman pays out 43.3% 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. Constellation Brands has raised its dividend for 9 consecutive years and Brown-Forman has raised its dividend for 34 consecutive years. Brown-Forman is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Constellation Brands currently has a consensus price target of $298.20, indicating a potential upside of 19.17%. Brown-Forman has a consensus price target of $65.68, indicating a potential upside of 43.21%. Given Constellation Brands' higher probable upside, analysts clearly believe Brown-Forman is more favorable than Constellation Brands.
Constellation Brands has higher revenue and earnings than Brown-Forman. Brown-Forman is trading at a lower price-to-earnings ratio than Constellation Brands, indicating that it is currently the more affordable of the two stocks.
In the previous week, Constellation Brands had 10 more articles in the media than Brown-Forman. MarketBeat recorded 11 mentions for Constellation Brands and 1 mentions for Brown-Forman. Brown-Forman's average media sentiment score of 0.44 beat Constellation Brands' score of 0.00 indicating that Constellation Brands is being referred to more favorably in the media.
Constellation Brands received 542 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.31% of users gave Constellation Brands an outperform vote while only 54.09% of users gave Brown-Forman an outperform vote.
Constellation Brands has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Brown-Forman has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Summary
Constellation Brands beats Brown-Forman on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BF.B 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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