Brown Forman Corporation (BF.A) vs Diageo plc (DEO)

Brown Forman Corporation and Diageo plc are both Beverages Wineries & Distilleries companies. Diageo plc is the larger, with a market value of $55.8B against $14.4B — 3.9× the size. Brown Forman Corporation trades at the lower P/E: 20.2× against 26.0×. Diageo plc grew revenue faster over the last twelve months: 25.2% against −0.84%. Diageo plc has the higher net margin (21.5% vs 18.4%) and the lower return on invested capital (0.00% vs 10.2%). Across the 19 metrics below, Brown Forman Corporation leads on 14 and Diageo plc on 5.

Valuation

Metric BF.A DEO Beverages Wineries & Distilleries median
P/E 20.24 25.99 —
P/S 3.68 n/m 0.52
P/B 3.63 n/m 0.56
Price to free cash flow 15.63 n/m 15.22
EV/EBITDA 13.57 1.48 13.27
EV/Sales 4.22 0.50 1.03
Earnings yield 4.94% 3.85% (32.98%)
Free cash flow yield 6.40% 0.00% 0.00%

Profitability

Metric BF.A DEO Beverages Wineries & Distilleries median
Gross margin 60.66% 60.51% 46.89%
Operating margin 25.36% 0.00% (7.45%)
Net margin 18.42% 21.50% (9.28%)
Free cash flow margin 23.63% 0.00% 0.06%
Return on equity 18.12% 0.00% 0.00%
Return on assets 9.01% 0.00% 0.00%
Return on invested capital 10.16% 0.00% 0.00%

Growth

Metric BF.A DEO Beverages Wineries & Distilleries median
Revenue growth (TTM) (0.84%) 25.19% (1.65%)
EPS growth (last fiscal year) (16.85%) (26.24%) (16.85%)
Revenue growth, 5-year CAGR 2.56% 2.77% 4.53%
Net income growth, 5-year CAGR (4.56%) (13.47%) (2.28%)

Health

Metric BF.A DEO Beverages Wineries & Distilleries median
Debt to equity 0.62 1.75 0.57
Current ratio 3.26 1.60 3.02
Net debt to EBITDA 1.79 3.66 1.34

Dividend

Metric BF.A DEO Beverages Wineries & Distilleries median
Dividend yield — 2.01% —
Payout ratio — — —

Size

Metric BF.A DEO Beverages Wineries & Distilleries median
Market cap 14.36b 55.78b 335.78m

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