Contrasting Brown-Forman (BF.B) and Constellation Brands, Inc. Class B (STZ.B)

Brown-Forman (NYSE:BF.B) and Constellation Brands, Inc. Class B (NYSE:STZ.B) are both large-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Brown-Forman and Constellation Brands, Inc. Class B’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brown-Forman 19.34% 55.19% 15.25%
Constellation Brands, Inc. Class B 38.18% 18.63% 8.09%

Dividends

Brown-Forman pays an annual dividend of $0.63 per share and has a dividend yield of 1.4%. Constellation Brands, Inc. Class B pays an annual dividend of $2.68 per share and has a dividend yield of 1.3%. Brown-Forman pays out 42.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Brown-Forman and Constellation Brands, Inc. Class B’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brown-Forman $3.25 billion 6.84 $717.00 million $1.48 31.22
Constellation Brands, Inc. Class B $8.33 billion 4.60 $2.32 billion N/A N/A

Constellation Brands, Inc. Class B has higher revenue and earnings than Brown-Forman.

Risk & Volatility

Brown-Forman has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Constellation Brands, Inc. Class B has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Institutional and Insider Ownership

28.6% of Brown-Forman shares are owned by institutional investors. Comparatively, 0.0% of Constellation Brands, Inc. Class B shares are owned by institutional investors. 10.1% of Brown-Forman shares are owned by insiders. Comparatively, 96.8% of Constellation Brands, Inc. Class B shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Brown-Forman and Constellation Brands, Inc. Class B, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brown-Forman 1 7 2 0 2.10
Constellation Brands, Inc. Class B 0 0 0 0 N/A

Brown-Forman currently has a consensus price target of $56.27, suggesting a potential upside of 21.79%. Given Brown-Forman’s higher possible upside, equities analysts clearly believe Brown-Forman is more favorable than Constellation Brands, Inc. Class B.

Summary

Brown-Forman beats Constellation Brands, Inc. Class B on 9 of the 14 factors compared between the two stocks.

About Brown-Forman

Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. The Company has a portfolio of approximately 40 spirit, wine and ready-to-drink cocktail (RTD) brands. Its principal brands include Jack Daniel’s Tennessee Whiskey, Jack Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Single Barrel Collection, Jack Daniel’s Sinatra Select, Jack Daniel’s Winter Jack, Jack Daniel’s No. 27 Gold Tennessee Whiskey, Finlandia Vodkas, Finlandia RTDs, Korbel California Brandy, Woodford Reserve Kentucky Bourbons, el Jimador Tequilas, el Jimador New Mix RTDs, Herradura Tequilas, Canadian Mist Canadian Whisky, Sonoma-Cutrer California Wines, Early Times Kentucky Whisky and Bourbon, Chambord Liqueur, Old Forester Kentucky Bourbon, Antiguo Tequila, Pepe Lopez Tequila, Santa Dose Cachaca and Collingwood Canadian Whisky.

About Constellation Brands, Inc. Class B

Constellation Brands, Inc. is an international beverage alcohol company. The Company is a producer and marketer of beer, wine and spirits with operations in the United States, Canada, Mexico, New Zealand and Italy. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States. It sells a number of brands in the import and craft beer categories, including Corona Extra, Corona Light, Modelo Especial, Ballast Point and others. It is a producer and marketer of wine, and sells a number of wine brands across various categories, including table wine, sparkling wine and dessert wine, and across all price points, such as popular, premium and luxury categories. Some of its wine and spirits brands sold in the United States, which comprise its U.S. Focus Brands (Focus Brands) include Meiomi, Robert Mondavi, Wild Horse and others.

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