Analyzing Burberry Group (BURBY) and Heineken (HEINY)

Heineken (OTCMKTS:HEINY) and Burberry Group (OTCMKTS:BURBY) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Heineken and Burberry Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heineken N/A N/A N/A
Burberry Group N/A N/A N/A

Valuation and Earnings

This table compares Heineken and Burberry Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heineken $24.73 billion 2.13 $2.19 billion $2.23 20.49
Burberry Group $3.62 billion 2.70 $389.38 million $1.11 21.41

Heineken has higher revenue and earnings than Burberry Group. Heineken is trading at a lower price-to-earnings ratio than Burberry Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.2% of Heineken shares are held by institutional investors. Comparatively, 0.1% of Burberry Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Heineken and Burberry Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heineken 0 2 0 0 2.00
Burberry Group 0 4 1 0 2.20

Risk and Volatility

Heineken has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Burberry Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Dividends

Heineken pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. Burberry Group pays an annual dividend of $0.75 per share and has a dividend yield of 3.2%. Heineken pays out 24.2% of its earnings in the form of a dividend. Burberry Group pays out 67.6% 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.

Summary

Burberry Group beats Heineken on 6 of the 11 factors compared between the two stocks.

Heineken Company Profile

Heineken N.V. engages in brewing and selling beer and cider. The company operates through Africa, Middle East & Eastern Europe; Americas; Asia Pacific; and Europe segments. It offers beer, cider, soft drinks, and other beverages. The company offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Tecate, Red Stripe, Krušovice, Birra Morett, Affligem, and Lagunitas brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Stassen, Bulmers, Old Mout, and Blind Pig brands. It offers its products to retailers, bars, and restaurants through distributors. The company was founded in 1864 and is headquartered in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.

Burberry Group Company Profile

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods for men, women, and children under the Burberry brand name. The company operates in two segments, Retail/Wholesale and Licensing. It offers apparel; accessories, such as women's handbags and small leather goods; and beauty, eyewear and timepieces. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It markets its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as an online platform Burberry.com; and third-party wholesale customers. The company operates 240 mainline stores, 155 concession stores, 54 outlets, and 46 franchise stores. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom.

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