Comparing Burberry Group (BURBY) & Heineken (HEINY)

Burberry Group (OTCMKTS:BURBY) and Heineken (OTCMKTS:HEINY) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

0.1% of Burberry Group shares are held by institutional investors. Comparatively, 0.2% of Heineken shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Burberry Group N/A N/A N/A
Heineken N/A N/A N/A

Volatility and Risk

Burberry Group has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Heineken has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Dividends

Burberry Group pays an annual dividend of $0.75 per share and has a dividend yield of 3.2%. Heineken pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. Burberry Group pays out 67.6% of its earnings in the form of a dividend. Heineken pays out 24.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares Burberry Group and Heineken’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Burberry Group $3.62 billion 2.67 $389.38 million $1.11 21.18
Heineken $24.73 billion 2.10 $2.19 billion $2.23 20.22

Heineken has higher revenue and earnings than Burberry Group. Heineken is trading at a lower price-to-earnings ratio than Burberry Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Burberry Group and Heineken, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Burberry Group 0 4 1 0 2.20
Heineken 0 2 0 0 2.00

Summary

Burberry Group beats Heineken on 6 of the 11 factors compared between the two stocks.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods for men, women, and children under the Burberry brand name. The company operates in two segments, Retail/Wholesale and Licensing. It offers apparel; accessories, such as women's handbags and small leather goods; and beauty, eyewear and timepieces. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It markets its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as an online platform Burberry.com; and third-party wholesale customers. The company operates 240 mainline stores, 155 concession stores, 54 outlets, and 46 franchise stores. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom.

About Heineken

Heineken N.V. engages in brewing and selling beer and cider. The company operates through Africa, Middle East & Eastern Europe; Americas; Asia Pacific; and Europe segments. It offers beer, cider, soft drinks, and other beverages. The company offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Tecate, Red Stripe, Krušovice, Birra Morett, Affligem, and Lagunitas brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Stassen, Bulmers, Old Mout, and Blind Pig brands. It offers its products to retailers, bars, and restaurants through distributors. The company was founded in 1864 and is headquartered in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.

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