Institutional & Insider Ownership
33.3% of Diageo shares are held by institutional investors. Comparatively, 36.7% of shares of all “Beverages” companies are held by institutional investors. 19.1% of shares of all “Beverages” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Diageo pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. Diageo pays out 66.3% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 2.5% and pay out 40.3% of their earnings in the form of a dividend. Diageo lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Profitability
This table compares Diageo and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diageo | N/A | N/A | N/A |
| Diageo Competitors | -8.22% | -32.35% | 0.12% |
Earnings & Valuation
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Diageo | N/A | N/A | 29.81 |
| Diageo Competitors | $21.70 billion | $874.57 million | 10.13 |
Diageo’s rivals have higher revenue and earnings than Diageo. Diageo is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Summary
Diageo rivals beat Diageo on 6 of the 9 factors compared.
Diageo Company Profile
Diageo plc, together with its subsidiaries, engages in the production, marketing, and sale of alcoholic beverages. It offers scotch, gin, vodka, rum, raki, liqueur, wine, tequila, Chinese white spirits, cachaça, and brandy, as well as beer, including cider and flavoured malt beverages. The company also provides Canadian, Irish, American, and Indian-Made Foreign Liquor whiskies, as well as ready to drink and non-alcoholic products. It provides its products primarily under the Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal, Don Julio, Cîroc, Buchanan's, Casamigos, J&B, and Ketel One brands. The company operates in the United States, the United Kingdom, Turkey, Australia, Korea, India, Greater China, Brazil, Mexico, South Africa, Nigeria, and internationally. Diageo plc was incorporated in 1886 and is headquartered in London, the United Kingdom.
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