Brown-Forman (BF.B) Competitors

Brown-Forman (NYSE:BF.B) and Constellation Brands (NYSE:STZ) are both large-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, community ranking, valuation, analyst recommendations, media sentiment, profitability and earnings.

Is BF.B or STZ a better dividend stock?

Brown-Forman pays an annual dividend of $0.90 per share and has a dividend yield of 2.2%. Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 1.8%. Brown-Forman pays out 42.5% of its earnings in the form of a dividend. Constellation Brands pays out 130.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brown-Forman is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more risk & volatility, BF.B or STZ?

Brown-Forman has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Do insiders and institutionals hold more shares of BF.B or STZ?

34.7% of Brown-Forman shares are held by institutional investors. Comparatively, 77.3% of Constellation Brands shares are held by institutional investors. 2.7% of Brown-Forman shares are held by company insiders. Comparatively, 12.2% of Constellation Brands 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.

Does the media prefer BF.B or STZ?

In the previous week, Constellation Brands had 10 more articles in the media than Brown-Forman. MarketBeat recorded 12 mentions for Constellation Brands and 2 mentions for Brown-Forman. Constellation Brands' average media sentiment score of 1.38 beat Brown-Forman's score of -0.27 indicating that Constellation Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Brown-Forman	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Constellation Brands	11 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is BF.B or STZ more profitable?

Brown-Forman has a net margin of 24.61% compared to Constellation Brands' net margin of 5.29%. Brown-Forman's return on equity of 28.83% beat Constellation Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Brown-Forman	24.61%	28.83%	12.19%
Constellation Brands	5.29%	25.34%	9.79%

Which has stronger earnings & valuation, BF.B or STZ?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brown-Forman	$4.08B	4.78	$1.02B	$2.12	19.47
Constellation Brands	$10.19B	4.07	$1.73B	$3.09	73.89

Does the MarketBeat Community favor BF.B or STZ?

Constellation Brands received 565 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.66% of users gave Constellation Brands an outperform vote while only 53.50% of users gave Brown-Forman an outperform vote.

Company	Underperform	Outperform
Brown-Forman	Outperform Votes 359 53.50%	Underperform Votes 312 46.50%
Constellation Brands	Outperform Votes 924 64.66%	Underperform Votes 505 35.34%

Do analysts rate BF.B or STZ?

Brown-Forman presently has a consensus price target of $49.57, indicating a potential upside of 20.09%. Constellation Brands has a consensus price target of $288.70, indicating a potential upside of 26.45%. Given Constellation Brands' stronger consensus rating and higher possible upside, analysts clearly believe Constellation Brands is more favorable than Brown-Forman.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brown-Forman	2 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.00
Constellation Brands	0 Sell rating(s)	5 Hold rating(s)	15 Buy rating(s)	0 Strong Buy rating(s)	2.75

Summary

Constellation Brands beats Brown-Forman on 14 of the 20 factors compared between the two stocks.