DEO vs. STZ, KDP, ABEV, BF.B, PEP, KO, MO, BTI, MDLZ, and MNST
Should you be buying Diageo stock or one of its competitors? The main competitors of Diageo include Constellation Brands (STZ), Keurig Dr Pepper (KDP), Ambev (ABEV), Brown-Forman (BF.B), PepsiCo (PEP), Coca-Cola (KO), Altria Group (MO), British American Tobacco (BTI), Mondelez International (MDLZ), and Monster Beverage (MNST). These companies are all part of the "consumer staples" sector.
Constellation Brands (NYSE:STZ) 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 dividends, analyst recommendations, institutional ownership, risk, valuation, earnings, profitability, media sentiment and community ranking.
Constellation Brands has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Diageo has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
In the previous week, Constellation Brands had 7 more articles in the media than Diageo. MarketBeat recorded 16 mentions for Constellation Brands and 9 mentions for Diageo. Diageo's average media sentiment score of 0.97 beat Constellation Brands' score of 0.70 indicating that Constellation Brands is being referred to more favorably in the media.
Constellation Brands presently has a consensus target price of $298.55, suggesting a potential upside of 14.81%. Diageo has a consensus target price of $166.37, suggesting a potential upside of 20.00%. Given Constellation Brands' higher possible upside, analysts clearly believe Diageo is more favorable than Constellation Brands.
Constellation Brands received 604 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 64.26% of users gave Constellation Brands an outperform vote while only 59.19% of users gave Diageo an outperform vote.
Constellation Brands pays an annual dividend of $4.04 per share and has a dividend yield of 1.6%. Diageo pays an annual dividend of $3.22 per share and has a dividend yield of 2.3%. Constellation Brands pays out 43.1% of its earnings in the form of a dividend. Constellation Brands has increased its dividend for 3 consecutive years.
77.3% of Constellation Brands shares are held by institutional investors. Comparatively, 9.0% of Diageo shares are held by institutional investors. 16.2% of Constellation Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Diageo has higher revenue and earnings than Constellation Brands.
Constellation Brands has a net margin of 16.13% compared to Constellation Brands' net margin of 0.00%. Diageo's return on equity of 23.06% beat Constellation Brands' return on equity.
Summary
Constellation Brands beats Diageo on 14 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DEO 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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