Diageo (NYSE:DEO) & Heineken (OTCMKTS:HEINY) Head-To-Head Review

Heineken (OTCMKTS:HEINY – Get Free Report) and Diageo (NYSE:DEO – Get Free Report) are both large-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Heineken and Diageo”s gross revenue, earnings per share and valuation.

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Diageo has lower revenue, but higher earnings than Heineken.

Risk and Volatility

Heineken has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Diageo has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Heineken and Diageo, as reported by MarketBeat.

Diageo has a consensus price target of $106.25, indicating a potential upside of 27.82%. Given Diageo’s higher probable upside, analysts plainly believe Diageo is more favorable than Heineken.

Institutional & Insider Ownership

9.0% of Diageo shares are owned by institutional investors. 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.

Dividends

Heineken pays an annual dividend of $1.01 per share and has a dividend yield of 2.3%. Diageo pays an annual dividend of $1.52 per share and has a dividend yield of 1.8%.

Profitability

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

Summary

Diageo beats Heineken on 6 of the 10 factors compared between the two stocks.

About Heineken

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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.

About Diageo

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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.

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