Constellation Brands (STZ) Competitors

Constellation Brands (NYSE:STZ) and Brown-Forman (NYSE:BF.B) 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 profitability, valuation, dividends, community ranking, earnings, risk, media sentiment, analyst recommendations and institutional ownership.

Do analysts rate STZ or BF.B?

Constellation Brands presently has a consensus target price of $250.41, indicating a potential upside of 38.75%. Brown-Forman has a consensus target price of $45.86, indicating a potential upside of 35.58%. Given Constellation Brands' stronger consensus rating and higher possible upside, equities analysts clearly believe Constellation Brands is more favorable than Brown-Forman.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Constellation Brands	0 Sell rating(s)	11 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.50
Brown-Forman	3 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	1.89

Does the MarketBeat Community believe in STZ or BF.B?

Constellation Brands received 580 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.38% of users gave Constellation Brands an outperform vote while only 53.41% of users gave Brown-Forman an outperform vote.

Company	Underperform	Outperform
Constellation Brands	Outperform Votes 940 64.38%	Underperform Votes 520 35.62%
Brown-Forman	Outperform Votes 360 53.41%	Underperform Votes 314 46.59%

Does the media refer more to STZ or BF.B?

In the previous week, Constellation Brands had 53 more articles in the media than Brown-Forman. MarketBeat recorded 56 mentions for Constellation Brands and 3 mentions for Brown-Forman. Brown-Forman's average media sentiment score of 0.76 beat Constellation Brands' score of 0.49 indicating that Brown-Forman is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Constellation Brands	25 Very Positive mention(s)	2 Positive mention(s)	23 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Neutral
Brown-Forman	1 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

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 2.2%. Brown-Forman pays an annual dividend of $0.90 per share and has a dividend yield of 2.7%. 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 43.1% 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 hold more shares of STZ or BF.B?

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

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

Constellation Brands has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Brown-Forman has a beta of 0.73, indicating that its share price is 27% 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%

Which has stronger valuation and earnings, 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	$10.18B	3.20	$1.73B	$3.72	48.52
Brown-Forman	$4.05B	3.95	$1.02B	$2.09	16.18

Summary

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