Diageo (DEO) Competitors

Diageo (NYSE:DEO) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both large-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, analyst recommendations, risk, valuation, dividends, earnings, profitability, media sentiment and institutional ownership.

Do analysts recommend DEO or BUD?

Diageo presently has a consensus price target of $129.00, indicating a potential upside of 22.57%. Anheuser-Busch InBev SA/NV has a consensus price target of $66.00, indicating a potential upside of 6.43%. Given Diageo's higher possible upside, analysts clearly believe Diageo is more favorable than Anheuser-Busch InBev SA/NV.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	1 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.38
Anheuser-Busch InBev SA/NV	0 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	2 Strong Buy rating(s)	3.13

Which has more volatility & risk, DEO or BUD?

Diageo has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Which has higher earnings and valuation, DEO or BUD?

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Diageo. Diageo is trading at a lower price-to-earnings ratio than Anheuser-Busch InBev SA/NV, 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	2.90	$3.87B	$6.85	15.36
Anheuser-Busch InBev SA/NV	$59.77B	1.86	$5.34B	$2.91	21.31

Is DEO or BUD a better dividend stock?

Diageo pays an annual dividend of $3.18 per share and has a dividend yield of 3.0%. Anheuser-Busch InBev SA/NV pays an annual dividend of $0.77 per share and has a dividend yield of 1.2%. Diageo pays out 46.4% of its earnings in the form of a dividend. Anheuser-Busch InBev SA/NV pays out 26.5% 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 MarketBeat Community favor DEO or BUD?

Anheuser-Busch InBev SA/NV received 433 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 65.35% of users gave Anheuser-Busch InBev SA/NV an outperform vote while only 59.05% of users gave Diageo an outperform vote.

Company	Underperform	Outperform
Diageo	Outperform Votes 297 59.05%	Underperform Votes 206 40.95%
Anheuser-Busch InBev SA/NV	Outperform Votes 730 65.35%	Underperform Votes 387 34.65%

Is DEO or BUD more profitable?

Anheuser-Busch InBev SA/NV has a net margin of 10.98% compared to Diageo's net margin of 0.00%. Anheuser-Busch InBev SA/NV's return on equity of 15.29% beat Diageo's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Anheuser-Busch InBev SA/NV	10.98%	15.29%	6.47%

Does the media favor DEO or BUD?

In the previous week, Anheuser-Busch InBev SA/NV had 1 more articles in the media than Diageo. MarketBeat recorded 15 mentions for Anheuser-Busch InBev SA/NV and 14 mentions for Diageo. Anheuser-Busch InBev SA/NV's average media sentiment score of 1.04 beat Diageo's score of 0.88 indicating that Anheuser-Busch InBev SA/NV is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diageo	8 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	2 Very Negative mention(s)	Positive
Anheuser-Busch InBev SA/NV	9 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders & institutionals have more ownership in DEO or BUD?

9.0% of Diageo shares are owned by institutional investors. Comparatively, 5.5% of Anheuser-Busch InBev SA/NV shares are owned by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Anheuser-Busch InBev SA/NV beats Diageo on 16 of the 21 factors compared between the two stocks.