Critical Survey: Remy Cointreau (OTCMKTS:REMYY) vs. Brown Forman (NYSE:BF.A)

Remy Cointreau (OTCMKTS:REMYY) and Brown Forman (NYSE:BF.A) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Remy Cointreau and Brown Forman”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Remy Cointreau	$1.06 billion	2.30	$130.21 million	N/A	N/A
Brown Forman	$3.98 billion	3.42	$869.00 million	$2.12	13.98

Brown Forman has higher revenue and earnings than Remy Cointreau.

Dividends

Remy Cointreau pays an annual dividend of $0.10 per share and has a dividend yield of 2.2%. Brown Forman pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. Brown Forman pays out 43.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

3.8% of Brown Forman shares are held by institutional investors. 4.0% of Brown Forman shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Remy Cointreau and Brown Forman, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Remy Cointreau	4	1	1	0	1.50
Brown Forman	0	0	0	0	0.00

Volatility and Risk

Remy Cointreau has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Brown Forman has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares Remy Cointreau and Brown Forman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Remy Cointreau	N/A	N/A	N/A
Brown Forman	20.64%	19.93%	9.85%

Summary

Brown Forman beats Remy Cointreau on 9 of the 13 factors compared between the two stocks.

About Remy Cointreau

Rémy Cointreau SA, together with its subsidiaries, engages in the production, sale, and distribution of liqueurs and spirits. It operates through Rémy Martin, Liqueurs & Spirits, and Partner Brands segments. The company offers cognacs, liqueurs, single malt whiskies, gins, rums, brandies, wines, and champagnes primarily under the Cointreau, Metaxa, St-Rémy, Mount Gay, Bruichladdich, The Botanist, Westland, Le Domaine des Hautes Glaces, Belle de Brillet, Telmont, Port Charlotte, Octomore, Rémy Martin, and LOUIS XIII brands. It operates in Europe, the Middle East, Africa, the Americas, Asia, Australia, and New Zealand. The company was founded in 1724 and is headquartered in Cognac, France.

About Brown Forman

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink and ready-to-pour products, ready-to-drink cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. The company offers its products primarily under the Jack Daniel's, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, Coopers' Craft, el Jimador, Herradura, New Mix, Pepe Lopez, Antiguo, Finlandia, Korbel Champagne, and Sonoma-Cutrer brands. It is also involved in the sale of used barrels, bulk whiskey, and wine; and provision of contract bottling services. The company serves retail customers and consumers through distributors or state governments; and retailers, wholesalers, and provincial governments directly. It has operations in the United States, the United Kingdom, Germany, Australia, Mexico, and internationally. Brown-Forman Corporation was founded in 1870 and is headquartered in Louisville, Kentucky.