Brown-Forman Corporation (BF.B) 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 $48.3B against $12.0B — 4.0× the size. Brown-Forman Corporation trades at the lower P/E: 16.9× against 22.8×. 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%). Both pay a dividend; Diageo plc yields more (2.71% vs 1.49%). Across the 20 metrics below, Brown-Forman Corporation leads on 14 and Diageo plc on 6.

Valuation

Metric BF.B DEO Beverages Wineries & Distilleries median
P/E 16.95 22.81 —
P/S 3.08 n/m 0.54
P/B 3.04 n/m 0.48
Price to free cash flow 13.09 n/m 13.31
EV/EBITDA 11.65 1.48 11.74
EV/Sales 3.63 0.50 1.25
Earnings yield 5.90% 4.38% 0.04%
Free cash flow yield 7.64% 0.00% 0.16%

Profitability

Metric BF.B DEO Beverages Wineries & Distilleries median
Gross margin 60.66% 60.51% 47.34%
Operating margin 25.36% 0.00% (1.13%)
Net margin 18.42% 21.50% (1.20%)
Free cash flow margin 23.63% 0.00% 0.09%
Return on equity 18.12% 0.00% 0.00%
Return on assets 9.01% 0.00% (1.72%)
Return on invested capital 10.16% 0.00% 0.00%

Growth

Metric BF.B DEO Beverages Wineries & Distilleries median
Revenue growth (TTM) (0.84%) 25.19% (1.37%)
EPS growth (last fiscal year) (16.85%) (26.24%) —
Revenue growth, 5-year CAGR 2.56% 2.77% 2.77%
Net income growth, 5-year CAGR (4.56%) (13.47%) 0.00%

Health

Metric BF.B DEO Beverages Wineries & Distilleries median
Debt to equity 0.62 1.75 0.44
Current ratio 3.26 1.60 2.92
Net debt to EBITDA 1.79 3.66 1.34

Dividend

Metric BF.B DEO Beverages Wineries & Distilleries median
Dividend yield 1.49% 2.71% —
Payout ratio 0.51 0.47 0.10

Size

Metric BF.B DEO Beverages Wineries & Distilleries median
Market cap 12.00b 48.33b 272.82m

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