Critical Comparison: Brown Forman (NYSE:BF.A) versus Heineken (OTCMKTS:HEINY)

Brown Forman (NYSE:BF.A) and Heineken (OTCMKTS:HEINY) 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 earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Valuation and Earnings

This table compares Brown Forman and Heineken”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brown Forman	$3.98 billion	3.33	$869.00 million	$1.72	16.80
Heineken	$38.75 billion	1.16	$2.13 billion	N/A	N/A

Heineken has higher revenue and earnings than Brown Forman.

Profitability

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

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

Dividends

Brown Forman pays an annual dividend of $0.92 per share and has a dividend yield of 3.2%. Heineken pays an annual dividend of $0.82 per share and has a dividend yield of 2.1%. Brown Forman pays out 53.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

3.8% of Brown Forman shares are held by institutional investors. 4.0% of Brown Forman shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Brown Forman has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Heineken has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Brown Forman and Heineken, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brown Forman	0	0	0	0	0.00
Heineken	0	5	2	2	2.67

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.

About Heineken

Heineken N.V. brews and sells beer and cider in the Americas, Europe, Africa, the Middle East, Eastern Europe, and the Asia Pacific. The company provides soft drinks and water. It offers its beers under the Heineken, Heineken Light, Orchard Thieves, Orchard Thieves Light, Birra Moretti, Coors, Murphy's and Beamish Stouts, Desperados, Tiger, Sol, and Foster's brand, as well as under regional and local brands. The company offers its products to retailers, wholesalers, cafes, bars, pubs, hotels, and restaurants. Heineken N.V. was incorporated in 1864 and is based in Amsterdam, the Netherlands. The company operates as a subsidiary of Heineken Holding N.V.