Diageo (DEO) Competitors

Anheuser-Busch InBev SA/NV (NYSE:BUD) and Diageo (NYSE:DEO) 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 profitability, valuation, risk, media sentiment, analyst recommendations, institutional ownership, community ranking, earnings and dividends.

Which has more risk & volatility, BUD or DEO?

Anheuser-Busch InBev SA/NV has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Is BUD or DEO 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
Anheuser-Busch InBev SA/NV	10.98%	15.29%	6.47%
Diageo	N/A	N/A	N/A

Do insiders and institutionals believe in BUD or DEO?

5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. Comparatively, 9.0% of Diageo shares are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV 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, BUD or DEO?

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
Anheuser-Busch InBev SA/NV	$59.77B	1.91	$5.34B	$2.91	21.79
Diageo	$20.21B	3.04	$3.87B	$6.85	16.15

Does the MarketBeat Community believe in BUD or DEO?

Anheuser-Busch InBev SA/NV received 434 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 65.42% of users gave Anheuser-Busch InBev SA/NV an outperform vote while only 59.13% of users gave Diageo an outperform vote.

Company	Underperform	Outperform
Anheuser-Busch InBev SA/NV	Outperform Votes 732 65.42%	Underperform Votes 387 34.58%
Diageo	Outperform Votes 298 59.13%	Underperform Votes 206 40.87%

Is BUD or DEO a better dividend stock?

Anheuser-Busch InBev SA/NV pays an annual dividend of $0.77 per share and has a dividend yield of 1.2%. Diageo pays an annual dividend of $3.18 per share and has a dividend yield of 2.9%. Anheuser-Busch InBev SA/NV pays out 26.5% of its earnings in the form of a dividend. Diageo pays out 46.4% 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.

Do analysts recommend BUD or DEO?

Anheuser-Busch InBev SA/NV presently has a consensus target price of $66.00, suggesting a potential upside of 4.10%. Diageo has a consensus target price of $129.00, suggesting a potential upside of 16.63%. Given Diageo's higher probable upside, analysts plainly believe Diageo is more favorable than Anheuser-Busch InBev SA/NV.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anheuser-Busch InBev SA/NV	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	3.11
Diageo	1 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.44

Does the media prefer BUD or DEO?

In the previous week, Diageo had 13 more articles in the media than Anheuser-Busch InBev SA/NV. MarketBeat recorded 23 mentions for Diageo and 10 mentions for Anheuser-Busch InBev SA/NV. Anheuser-Busch InBev SA/NV's average media sentiment score of 1.49 beat Diageo's score of 0.90 indicating that Anheuser-Busch InBev SA/NV is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Anheuser-Busch InBev SA/NV	8 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Diageo	13 Very Positive mention(s)	0 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Summary

Anheuser-Busch InBev SA/NV beats Diageo on 15 of the 21 factors compared between the two stocks.