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

Insider & Institutional Ownership

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

Profitability

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

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

Risk and Volatility

Brown Forman Corporation has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Brown Forman Corporation has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Brown Forman Corporation and Brown Forman Corporation, as reported by MarketBeat.

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

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

Dividends

Brown Forman Corporation pays an annual dividend of $0.73 per share and has a dividend yield of 1.2%. Brown Forman Corporation pays an annual dividend of $0.73 per share and has a dividend yield of 1.2%. Brown Forman Corporation pays out 40.3% of its earnings in the form of a dividend. Brown Forman Corporation 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. Brown Forman Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Brown Forman Corporation and Brown Forman Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Brown Forman Corporation $3.86 billion 5.86 $669.00 million $1.81 32.51
Brown Forman Corporation $3.86 billion 5.90 $669.00 million $1.80 32.88

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

Summary

Brown Forman Corporation beats Brown Forman Corporation on 7 of the 10 factors compared between the two stocks.

Brown Forman Corporation 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 Corporation 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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