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

Analyst Ratings

This is a breakdown of current recommendations for Brown Forman and Brown Forman, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brown Forman 0 0 0 0 N/A
Brown Forman 1 9 1 0 2.00

Brown Forman has a consensus target price of $51.89, indicating a potential downside of 11.81%. Given Brown Forman’s higher probable upside, analysts plainly believe Brown Forman is more favorable than Brown Forman.

Risk & Volatility

Brown Forman has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Brown Forman has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Dividends

Brown Forman pays an annual dividend of $0.73 per share and has a dividend yield of 1.2%. Brown Forman pays an annual dividend of $0.73 per share and has a dividend yield of 1.2%. Brown Forman pays out 40.6% of its earnings in the form of a dividend. Brown Forman pays out 40.6% 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.

Insider & Institutional Ownership

6.7% of Brown Forman shares are owned by institutional investors. Comparatively, 24.5% of Brown Forman shares are owned by institutional investors. 4.4% of Brown Forman shares are owned by company insiders. Comparatively, 10.1% of Brown Forman shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Brown Forman and Brown Forman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brown Forman 17.84% 53.63% 15.04%
Brown Forman 17.84% 53.63% 15.04%

Valuation and Earnings

This table compares Brown Forman and Brown Forman’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Brown Forman $3.86 billion 5.90 $669.00 million $1.80 32.88
Brown Forman $3.86 billion 5.86 $669.00 million $1.80 32.69

Brown Forman is trading at a lower price-to-earnings ratio than Brown Forman, indicating that it is currently the more affordable of the two stocks.

Summary

Brown Forman beats Brown Forman on 5 of the 8 factors compared between the two stocks.

Brown Forman Company Profile

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.

Brown Forman Company Profile

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.

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