Financial Review: Brown-Forman (BF.A) vs. Brown Forman (BF.B)

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

Analyst Ratings

This is a summary of recent ratings for Brown-Forman and Brown Forman, as reported by MarketBeat.com.

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 price target of $54.56, indicating a potential downside of 17.15%. Given Brown Forman’s higher possible upside, analysts clearly believe Brown Forman is more favorable than Brown-Forman.

Institutional & Insider Ownership

6.7% of Brown-Forman shares are held by institutional investors. Comparatively, 24.7% of Brown Forman shares are held by institutional investors. 4.4% of Brown-Forman shares are held by insiders. Comparatively, 10.1% of Brown Forman shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brown-Forman $3.86 billion 6.52 $669.00 million $1.80 36.36
Brown Forman $3.86 billion 6.56 $669.00 million $1.81 36.38

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.

Risk & Volatility

Brown-Forman has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Brown Forman has a beta of 0.95, suggesting that its stock price is 5% 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 1.1%. Brown Forman pays an annual dividend of $0.73 per share and has a dividend yield of 1.1%. Brown-Forman pays out 40.6% of its earnings in the form of a dividend. Brown Forman pays out 40.3% 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.

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%

Summary

Brown Forman beats Brown-Forman on 7 of the 10 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 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.

What are top analysts saying about Brown-Forman Co.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Brown-Forman Co. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit