ABF vs. TSCO, IMB, BNZL, CCH, RKT, SBRY, BME, BATS, DGE, and TATE
Should you be buying Associated British Foods stock or one of its competitors? The main competitors of Associated British Foods include Tesco (TSCO), Imperial Brands (IMB), Bunzl (BNZL), Coca-Cola HBC (CCH), Reckitt Benckiser Group (RKT), J Sainsbury (SBRY), B&M European Value Retail (BME), British American Tobacco (BATS), Diageo (DGE), and Tate & Lyle (TATE). These companies are all part of the "consumer defensive" sector.
Associated British Foods (LON:ABF) and Tesco (LON:TSCO) are both large-cap consumer defensive companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, community ranking, media sentiment, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Tesco received 173 more outperform votes than Associated British Foods when rated by MarketBeat users. However, 72.97% of users gave Associated British Foods an outperform vote while only 61.59% of users gave Tesco an outperform vote.
Associated British Foods currently has a consensus target price of GBX 2,125, indicating a potential downside of 22.16%. Tesco has a consensus target price of GBX 313.33, indicating a potential upside of 0.78%. Given Tesco's stronger consensus rating and higher probable upside, analysts clearly believe Tesco is more favorable than Associated British Foods.
Tesco has higher revenue and earnings than Associated British Foods. Tesco is trading at a lower price-to-earnings ratio than Associated British Foods, indicating that it is currently the more affordable of the two stocks.
Associated British Foods has a net margin of 5.92% compared to Tesco's net margin of 1.74%. Tesco's return on equity of 14.77% beat Associated British Foods' return on equity.
19.0% of Associated British Foods shares are held by institutional investors. Comparatively, 64.1% of Tesco shares are held by institutional investors. 58.8% of Associated British Foods shares are held by company insiders. Comparatively, 2.1% of Tesco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Associated British Foods pays an annual dividend of GBX 54 per share and has a dividend yield of 2.0%. Tesco pays an annual dividend of GBX 12 per share and has a dividend yield of 3.9%. Associated British Foods pays out 3,483.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tesco pays out 4,800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Associated British Foods has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Tesco has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.
In the previous week, Tesco had 7 more articles in the media than Associated British Foods. MarketBeat recorded 9 mentions for Tesco and 2 mentions for Associated British Foods. Associated British Foods' average media sentiment score of 0.94 beat Tesco's score of 0.54 indicating that Associated British Foods is being referred to more favorably in the media.
Summary
Associated British Foods and Tesco tied by winning 10 of the 20 factors compared between the two stocks.
This chart shows the number of new MarketBeat users adding ABF 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 LON 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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