Brown-Forman (NYSE:BF.B) and Crimson Wine Group (OTCMKTS:CWGL) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Volatility and Risk
Brown-Forman has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Crimson Wine Group has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.
This table compares Brown-Forman and Crimson Wine Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crimson Wine Group||8.68%||2.90%||2.46%|
Brown-Forman pays an annual dividend of $0.63 per share and has a dividend yield of 1.4%. Crimson Wine Group does not pay a dividend. Brown-Forman pays out 42.6% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Brown-Forman and Crimson Wine Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crimson Wine Group||0||0||0||0||N/A|
Brown-Forman presently has a consensus price target of $56.27, suggesting a potential upside of 20.59%. Given Brown-Forman’s higher possible upside, equities analysts clearly believe Brown-Forman is more favorable than Crimson Wine Group.
Valuation and Earnings
This table compares Brown-Forman and Crimson Wine Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brown-Forman||$3.25 billion||6.91||$717.00 million||$1.48||31.53|
|Crimson Wine Group||$63.22 million||2.99||$6.18 million||N/A||N/A|
Brown-Forman has higher revenue and earnings than Crimson Wine Group.
Institutional & Insider Ownership
23.1% of Brown-Forman shares are owned by institutional investors. Comparatively, 23.1% of Crimson Wine Group shares are owned by institutional investors. 10.1% of Brown-Forman shares are owned by insiders. Comparatively, 21.6% of Crimson Wine Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Brown-Forman beats Crimson Wine Group on 11 of the 14 factors compared between the two stocks.
Brown-Forman Company Profile
Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. The Company has a portfolio of approximately 40 spirit, wine and ready-to-drink cocktail (RTD) brands. Its principal brands include Jack Daniel’s Tennessee Whiskey, Jack Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Single Barrel Collection, Jack Daniel’s Sinatra Select, Jack Daniel’s Winter Jack, Jack Daniel’s No. 27 Gold Tennessee Whiskey, Finlandia Vodkas, Finlandia RTDs, Korbel California Brandy, Woodford Reserve Kentucky Bourbons, el Jimador Tequilas, el Jimador New Mix RTDs, Herradura Tequilas, Canadian Mist Canadian Whisky, Sonoma-Cutrer California Wines, Early Times Kentucky Whisky and Bourbon, Chambord Liqueur, Old Forester Kentucky Bourbon, Antiguo Tequila, Pepe Lopez Tequila, Santa Dose Cachaca and Collingwood Canadian Whisky.
Crimson Wine Group Company Profile
Crimson Wine Group, Ltd., through its subsidiaries, engages in the production and sale of ultra-premium and wines. It operates through two segments, Wholesale and Direct to Consumer. The company sells wines through independent wine and spirit distributors in the United States; and independent importers and brokers internationally. It exports its products to 35 countries. The company was formerly known as Leucadia Cellars, Ltd. and changed its name to Crimson Wine Group, Ltd. in November 2007. Crimson Wine Group, Ltd. was founded in 1991 and is headquartered in Napa, California. Crimson Wine Group, Ltd. was formerly a subsidiary of Leucadia National Corporation.
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