Comparing Brown-Forman (BF.B) & Its Competitors

Brown-Forman (NYSE: BF.B) is one of 17 publicly-traded companies in the “Beverages” industry, but how does it contrast to its competitors? We will compare Brown-Forman to similar companies based on the strength of its earnings, analyst recommendations, profitability, dividends, valuation, institutional ownership and risk.

Profitability

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This table compares Brown-Forman and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brown-Forman 18.15% 55.27% 16.02%
Brown-Forman Competitors -25.61% -35.90% -21.58%

Insider and Institutional Ownership

20.3% of Brown-Forman shares are held by institutional investors. Comparatively, 33.9% of shares of all “Beverages” companies are held by institutional investors. 10.1% of Brown-Forman shares are held by company insiders. Comparatively, 17.6% of shares of all “Beverages” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Brown-Forman and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Brown-Forman $3.86 billion $669.00 million 39.90
Brown-Forman Competitors $13.52 billion $1.52 billion 23.75

Brown-Forman’s competitors have higher revenue and earnings than Brown-Forman. Brown-Forman is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Brown-Forman has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Brown-Forman’s competitors have a beta of 0.18, suggesting that their average stock price is 82% less volatile than the S&P 500.

Dividends

Brown-Forman pays an annual dividend of $0.63 per share and has a dividend yield of 1.1%. Brown-Forman pays out 45.7% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 1.8% and pay out 47.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Brown-Forman and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brown-Forman 0 12 1 0 2.08
Brown-Forman Competitors 125 682 831 24 2.45

Brown-Forman currently has a consensus price target of $47.22, indicating a potential downside of 14.24%. As a group, “Beverages” companies have a potential upside of 8.69%. Given Brown-Forman’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Brown-Forman has less favorable growth aspects than its competitors.

Summary

Brown-Forman competitors beat Brown-Forman on 9 of the 15 factors compared.

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.

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