STZ vs. BF.B, KDP, ABEV, DEO, KMB, EL, KHC, HSY, GIS, and CTVA
Should you be buying Constellation Brands stock or one of its competitors? The main competitors of Constellation Brands include Brown-Forman (BF.B), Keurig Dr Pepper (KDP), Ambev (ABEV), Diageo (DEO), Kimberly-Clark (KMB), Estée Lauder Companies (EL), Kraft Heinz (KHC), Hershey (HSY), General Mills (GIS), and Corteva (CTVA). These companies are all part of the "consumer staples" sector.
Brown-Forman (NYSE:BF.B) and Constellation Brands (NYSE:STZ) are both large-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, media sentiment, valuation, community ranking, analyst recommendations and institutional ownership.
Constellation Brands received 540 more outperform votes than Brown-Forman when rated by MarketBeat users. Likewise, 64.26% of users gave Constellation Brands an outperform vote while only 54.09% of users gave Brown-Forman an outperform vote.
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.
In the previous week, Constellation Brands had 10 more articles in the media than Brown-Forman. MarketBeat recorded 11 mentions for Constellation Brands and 1 mentions for Brown-Forman. Brown-Forman's average media sentiment score of 0.48 beat Constellation Brands' score of 0.00 indicating that Constellation Brands is being referred to more favorably in the news media.
34.7% of Brown-Forman shares are held by institutional investors. Comparatively, 77.3% of Constellation Brands shares are held by institutional investors. 2.7% of Brown-Forman shares are held by insiders. Comparatively, 16.2% of Constellation Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Brown-Forman pays an annual dividend of $0.87 per share and has a dividend yield of 1.8%. Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 1.6%. Brown-Forman pays out 43.3% of its earnings in the form of a dividend. Constellation Brands pays out 43.1% 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. Brown-Forman has increased its dividend for 34 consecutive years and Constellation Brands has increased its dividend for 4 consecutive years. Brown-Forman is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Brown-Forman has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Constellation Brands has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Brown-Forman currently has a consensus price target of $65.68, indicating a potential upside of 35.50%. Constellation Brands has a consensus price target of $298.55, indicating a potential upside of 16.88%. Given Constellation Brands' higher probable upside, analysts plainly believe Brown-Forman is more favorable than Constellation Brands.
Brown-Forman has a net margin of 22.65% compared to Brown-Forman's net margin of 16.13%. Constellation Brands' return on equity of 29.01% beat Brown-Forman's return on equity.
Summary
Constellation Brands beats Brown-Forman on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding STZ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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