Brown-Forman (BF.A) & Brown-Forman (BF.B) Head-To-Head Comparison

Brown-Forman (NYSE: BF.B) and Brown-Forman (NYSE:BF.A) are both large-cap distillers & wineries – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Risk and Volatility

Brown-Forman has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Brown-Forman has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Dividends

Brown-Forman pays an annual dividend of $0.79 per share and has a dividend yield of 1.2%. Brown-Forman pays an annual dividend of $0.79 per share and has a dividend yield of 1.2%. Brown-Forman pays out 41.1% of its earnings in the form of a dividend. Brown-Forman pays out 41.1% 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 18.39% 53.15% 15.72%
Brown-Forman 26.15% 62.51% 19.60%

Insider and Institutional Ownership

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

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 Net Income Earnings Per Share Price/Earnings Ratio
Brown-Forman $3.86 billion 6.84 $669.00 million $1.92 35.77
Brown-Forman $3.86 billion 6.70 $669.00 million $1.92 35.02

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.

Analyst Ratings

This is a breakdown of recent 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 11 0 0 2.00
Brown-Forman 0 0 0 0 N/A

Brown-Forman presently has a consensus price target of $55.78, suggesting a potential downside of 18.77%. Given Brown-Forman’s higher possible upside, equities analysts plainly believe Brown-Forman is more favorable than Brown-Forman.

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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