DEO vs. KO, PEP, KDP, STZ, 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), Keurig Dr Pepper (KDP), Constellation Brands (STZ), 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 better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings, analyst recommendations, media sentiment and community ranking.
Diageo presently has a consensus price target of $166.37, suggesting a potential upside of 23.15%. Coca-Cola has a consensus price target of $68.58, suggesting a potential upside of 8.98%. Given Diageo's higher possible upside, equities analysts clearly believe Diageo is more favorable than Coca-Cola.
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 3.1%. 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.
In the previous week, Coca-Cola had 13 more articles in the media than Diageo. MarketBeat recorded 21 mentions for Coca-Cola and 8 mentions for Diageo. Diageo's average media sentiment score of 0.87 beat Coca-Cola's score of 0.86 indicating that Diageo is being referred to more favorably in the media.
Coca-Cola has higher revenue and earnings than Diageo.
Coca-Cola has a net margin of 23.41% compared to Diageo's net margin of 0.00%. Coca-Cola's return on equity of 42.74% beat Diageo's return on equity.
Diageo has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
Coca-Cola received 882 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 67.76% of users gave Coca-Cola an outperform vote while only 59.19% of users gave Diageo an outperform vote.
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 company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Coca-Cola beats Diageo on 14 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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