Diageo (NYSE:DEO) vs. PERNOD RICARD S/ADR (NYSE:PDRDY) Head-To-Head Comparison

Diageo (NYSE:DEO) and PERNOD RICARD S/ADR (OTCMKTS:PDRDY) are both large-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Dividends

Diageo pays an annual dividend of $4.16 per share and has a dividend yield of 2.6%. PERNOD RICARD S/ADR pays an annual dividend of $0.37 per share and has a dividend yield of 1.0%. Diageo pays out 61.6% of its earnings in the form of a dividend. PERNOD RICARD S/ADR pays out 26.4% 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.

Earnings & Valuation

This table compares Diageo and PERNOD RICARD S/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diageo $16.65 billion 6.28 $4.09 billion $6.75 23.83
PERNOD RICARD S/ADR $10.32 billion 4.57 $1.66 billion $1.40 25.36

Diageo has higher revenue and earnings than PERNOD RICARD S/ADR. Diageo is trading at a lower price-to-earnings ratio than PERNOD RICARD S/ADR, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Diageo has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, PERNOD RICARD S/ADR has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Diageo and PERNOD RICARD S/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diageo 2 3 2 0 2.00
PERNOD RICARD S/ADR 0 4 3 0 2.43

Profitability

This table compares Diageo and PERNOD RICARD S/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diageo N/A N/A N/A
PERNOD RICARD S/ADR N/A N/A N/A

Institutional and Insider Ownership

9.5% of Diageo shares are owned by institutional investors. Comparatively, 0.1% of PERNOD RICARD S/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Diageo beats PERNOD RICARD S/ADR on 7 of the 11 factors compared between the two stocks.

About Diageo

Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Bundaberg, McDowell's No. 1, Black & White, Shui Jing Fang, Grand Old Parr, Ypióca, Lagavulin, Cîroc, Bulleit Bourbon, Ron Zacapa Centenario XO, The Singleton of Glen Ord, Casamigos, Talisker, Tanqueray, and Guinness. The company also provides adult beverages and non-alcoholic products. Diageo plc was founded in 1886 and is headquartered in London, the United Kingdom.

About PERNOD RICARD S/ADR

Pernod Ricard SA produces and sells beers, wines, and spirits in the Americas, Europe, Asia, and internationally. Its principal brands include Absolut, Ballantine's, Beefeater, Chivas Regal, Kahlúa, Malibu, Martell, and Brancott Estate. The company was founded in 1805 and is headquartered in Paris, France.

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