Financial Review: Diageo (NYSE:DEO) and Carlsberg AS (OTCMKTS:CABGY)

Carlsberg AS (OTCMKTS:CABGY) and Diageo (NYSE:DEO) 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 dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

9.0% of Diageo shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Carlsberg AS and Diageo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carlsberg AS	$13.49 billion	1.22	$901.59 million	N/A	N/A
Diageo	$20.25 billion	2.03	$2.35 billion	N/A	N/A

Diageo has higher revenue and earnings than Carlsberg AS.

Analyst Recommendations

This is a summary of recent ratings and target prices for Carlsberg AS and Diageo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carlsberg AS	0	1	2	2	3.20
Diageo	2	7	5	0	2.21

Diageo has a consensus target price of $116.50, suggesting a potential upside of 57.42%. Given Diageo’s higher possible upside, analysts clearly believe Diageo is more favorable than Carlsberg AS.

Volatility & Risk

Carlsberg AS has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Profitability

This table compares Carlsberg AS and Diageo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carlsberg AS	N/A	N/A	N/A
Diageo	N/A	N/A	N/A

Dividends

Carlsberg AS pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Diageo pays an annual dividend of $4.96 per share and has a dividend yield of 6.7%.

Summary

Diageo beats Carlsberg AS on 8 of the 10 factors compared between the two stocks.

About Carlsberg AS

Carlsberg A/S produces and sells beer and other beverage products in Denmark, China, the United Kingdom, and internationally. The company offers core, craft, and specialty beers; soft drinks; and alcohol-free brews under various brands. The company was founded in 1847 and is headquartered in Copenhagen, Denmark.

About Diageo

Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. The company offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavored malt beverages. It also provides Chinese, Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as flavored malt beverages, ready to drink, and non-alcoholic products. The company provides its products under the Johnnie Walker, Crown Royal, J&B, Buchanan’s, Smirnoff, Cîroc, Ketel One, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, Guinness, Shui Jing Fang, Yenì, McDowell’s, Don Papa, Aviation American, Seagram, Seagram’s 7 Crown, Zacapa, Black Dog, Black & White, Signature, Royal Challenge, Godawan, Antiquity, Gordon’s, Old Parr, Windsor, Bundaberg, Ypióca, Bulleit, and Bell’s brand names. It operates in the United States, the United Kingdom, Türkiye, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.