DEO vs. STZ, KDP, ABEV, PEP, KO, MO, CL, BTI, MDLZ, and MNST
Should you be buying Diageo stock or one of its competitors? The main competitors of Diageo include Constellation Brands (STZ), Keurig Dr Pepper (KDP), Ambev (ABEV), PepsiCo (PEP), Coca-Cola (KO), Altria Group (MO), Colgate-Palmolive (CL), British American Tobacco (BTI), Mondelez International (MDLZ), and Monster Beverage (MNST). These companies are all part of the "consumer staples" sector.
Diageo (NYSE:DEO) and Constellation Brands (NYSE:STZ) are both large-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, media sentiment, valuation, risk, dividends, analyst recommendations, institutional ownership, earnings and community ranking.
Diageo has higher revenue and earnings than Constellation Brands.
Constellation Brands received 604 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 64.26% of users gave Constellation Brands an outperform vote while only 59.19% of users gave Diageo an outperform vote.
In the previous week, Constellation Brands had 2 more articles in the media than Diageo. MarketBeat recorded 11 mentions for Constellation Brands and 9 mentions for Diageo. Diageo's average media sentiment score of 1.03 beat Constellation Brands' score of 0.65 indicating that Diageo is being referred to more favorably in the media.
9.0% of Diageo shares are held by institutional investors. Comparatively, 77.3% of Constellation Brands shares are held by institutional investors. 16.2% of Constellation Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Diageo has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
Diageo pays an annual dividend of $3.22 per share and has a dividend yield of 2.3%. Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 1.6%. Constellation Brands pays out 43.1% of its earnings in the form of a dividend.
Constellation Brands has a net margin of 16.13% compared to Diageo's net margin of 0.00%. Constellation Brands' return on equity of 23.06% beat Diageo's return on equity.
Diageo presently has a consensus target price of $166.37, suggesting a potential upside of 16.83%. Constellation Brands has a consensus target price of $298.55, suggesting a potential upside of 16.88%. Given Constellation Brands' stronger consensus rating and higher probable upside, analysts clearly believe Constellation Brands is more favorable than Diageo.
Summary
Constellation Brands beats Diageo on 13 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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