Brown-Forman (BF.A) Competitors

Diageo (NYSE:DEO) and Brown-Forman (NYSE:BF.A) are both large-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, media sentiment, analyst recommendations, earnings, institutional ownership, community ranking and profitability.

Is DEO or BF.A a better dividend stock?

Diageo pays an annual dividend of $3.18 per share and has a dividend yield of 2.9%. Brown-Forman pays an annual dividend of $0.91 per share and has a dividend yield of 2.8%. Diageo pays out 46.4% of its earnings in the form of a dividend. Brown-Forman pays out 42.9% 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.

Does the media refer more to DEO or BF.A?

In the previous week, Diageo had 22 more articles in the media than Brown-Forman. MarketBeat recorded 23 mentions for Diageo and 1 mentions for Brown-Forman. Diageo's average media sentiment score of 1.07 beat Brown-Forman's score of 0.00 indicating that Diageo is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diageo	16 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive
Brown-Forman	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more risk & volatility, DEO or BF.A?

Diageo has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Brown-Forman has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Does the MarketBeat Community believe in DEO or BF.A?

Diageo received 156 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 59.13% of users gave Diageo an outperform vote while only 55.69% of users gave Brown-Forman an outperform vote.

Company	Underperform	Outperform
Diageo	Outperform Votes 298 59.13%	Underperform Votes 206 40.87%
Brown-Forman	Outperform Votes 142 55.69%	Underperform Votes 113 44.31%

Do insiders & institutionals hold more shares of DEO or BF.A?

9.0% of Diageo shares are held by institutional investors. Comparatively, 3.8% of Brown-Forman shares are held by institutional investors. 4.0% of Brown-Forman shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Which has higher valuation & earnings, DEO or BF.A?

Diageo has higher revenue and earnings than Brown-Forman. Brown-Forman is trading at a lower price-to-earnings ratio than Diageo, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diageo	$20.21B	2.97	$3.87B	$6.85	15.77
Brown-Forman	$4.18B	3.67	$1.02B	$2.12	15.30

Is DEO or BF.A more profitable?

Brown-Forman has a net margin of 24.61% compared to Diageo's net margin of 0.00%. Brown-Forman's return on equity of 28.83% beat Diageo's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Brown-Forman	24.61%	28.83%	12.19%

Do analysts rate DEO or BF.A?

Diageo presently has a consensus price target of $129.00, suggesting a potential upside of 19.40%. Given Diageo's stronger consensus rating and higher probable upside, equities analysts clearly believe Diageo is more favorable than Brown-Forman.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	1 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.44
Brown-Forman	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Summary

Diageo beats Brown-Forman on 13 of the 20 factors compared between the two stocks.