Diageo (DEO) Competitors

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

Does the MarketBeat Community believe in DEO or KO?

Coca-Cola received 897 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 67.88% of users gave Coca-Cola an outperform vote while only 59.28% of users gave Diageo an outperform vote.

Company	Underperform	Outperform
Diageo	Outperform Votes 297 59.28%	Underperform Votes 204 40.72%
Coca-Cola	Outperform Votes 1194 67.88%	Underperform Votes 565 32.12%

Which has more volatility & risk, DEO or KO?

Diageo has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Coca-Cola has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Do analysts rate DEO or KO?

Coca-Cola has a consensus target price of $72.50, indicating a potential upside of 14.25%. Given Coca-Cola's stronger consensus rating and higher probable upside, analysts plainly believe Coca-Cola is more favorable than Diageo.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	2 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.25
Coca-Cola	0 Sell rating(s)	2 Hold rating(s)	13 Buy rating(s)	1 Strong Buy rating(s)	2.94

Do institutionals and insiders hold more shares of DEO or KO?

9.0% of Diageo shares are owned by institutional investors. Comparatively, 70.3% of Coca-Cola shares are owned by institutional investors. 1.0% of Coca-Cola shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Is DEO or KO a better dividend stock?

Diageo pays an annual dividend of $5.01 per share and has a dividend yield of 3.9%. Coca-Cola pays an annual dividend of $1.94 per share and has a dividend yield of 3.1%. Diageo pays out 72.6% of its earnings in the form of a dividend. Coca-Cola pays out 80.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Coca-Cola has raised its dividend for 63 consecutive years. Diageo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media refer more to DEO or KO?

In the previous week, Coca-Cola had 36 more articles in the media than Diageo. MarketBeat recorded 50 mentions for Coca-Cola and 14 mentions for Diageo. Coca-Cola's average media sentiment score of 0.94 beat Diageo's score of 0.86 indicating that Coca-Cola is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diageo	7 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Coca-Cola	23 Very Positive mention(s)	9 Positive mention(s)	16 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has higher earnings and valuation, DEO or KO?

Coca-Cola has higher revenue and earnings than Diageo. Diageo is trading at a lower price-to-earnings ratio than Coca-Cola, 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	$20.27B	3.50	$3.87B	$6.90	18.50
Coca-Cola	$46.37B	5.90	$10.71B	$2.42	26.22

Is DEO or KO more profitable?

Coca-Cola has a net margin of 22.45% compared to Diageo's net margin of 0.00%. Coca-Cola's return on equity of 44.01% beat Diageo's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Coca-Cola	22.45%	44.01%	12.07%

Summary

Coca-Cola beats Diageo on 18 of the 22 factors compared between the two stocks.