Brown-Forman (BF.B) Competitors

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

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

Constellation Brands has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Brown-Forman has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Is STZ or BF.B more profitable?

Brown-Forman has a net margin of 24.61% compared to Constellation Brands' net margin of 6.27%. Brown-Forman's return on equity of 28.83% beat Constellation Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Constellation Brands	6.27%	26.55%	10.03%
Brown-Forman	24.61%	28.83%	12.19%

Does the MarketBeat Community prefer STZ or BF.B?

Constellation Brands received 579 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.56% of users gave Constellation Brands an outperform vote while only 53.50% of users gave Brown-Forman an outperform vote.

Company	Underperform	Outperform
Constellation Brands	Outperform Votes 938 64.56%	Underperform Votes 515 35.44%
Brown-Forman	Outperform Votes 359 53.50%	Underperform Votes 312 46.50%

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

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
Constellation Brands	$10.71B	2.97	$1.73B	$3.72	47.31
Brown-Forman	$4.18B	3.62	$1.02B	$2.12	15.11

Does the media prefer STZ or BF.B?

In the previous week, Constellation Brands had 39 more articles in the media than Brown-Forman. MarketBeat recorded 40 mentions for Constellation Brands and 1 mentions for Brown-Forman. Constellation Brands' average media sentiment score of 0.53 beat Brown-Forman's score of 0.00 indicating that Constellation Brands is being referred to more favorably in the media.

Company	Overall Sentiment
Constellation Brands	Positive
Brown-Forman	Neutral

Do analysts rate STZ or BF.B?

Constellation Brands presently has a consensus target price of $254.29, indicating a potential upside of 44.48%. Brown-Forman has a consensus target price of $48.17, indicating a potential upside of 50.36%. Given Brown-Forman's higher possible upside, analysts plainly believe Brown-Forman is more favorable than Constellation Brands.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	0 Sell rating(s)	9 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.57
Brown-Forman	2 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is STZ or BF.B a better dividend stock?

Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 2.3%. Brown-Forman pays an annual dividend of $0.91 per share and has a dividend yield of 2.8%. Constellation Brands pays out 108.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brown-Forman pays out 42.9% of its earnings in the form of a dividend. Brown-Forman is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do insiders and institutionals believe in STZ or BF.B?

77.3% of Constellation Brands shares are owned by institutional investors. Comparatively, 34.7% of Brown-Forman shares are owned by institutional investors. 12.2% of Constellation Brands shares are owned by insiders. Comparatively, 2.7% of Brown-Forman shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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