WallStSmart

Brown-Forman Corporation (BF-B)vsDiageo PLC ADR (DEO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diageo PLC ADR generates 404% more annual revenue ($19.80B vs $3.93B). BF-B leads profitability with a 18.2% profit margin vs 12.2%. DEO appears more attractively valued with a PEG of 0.83. DEO earns a higher WallStSmart Score of 56/100 (C).

BF-B

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 8.0Value: 5.0Quality: 6.8
Piotroski: 5/9

DEO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 8.0Value: 8.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BF-B.

DEOUndervalued (+53.7%)

Margin of Safety

+53.7%

Fair Value

$217.62

Current Price

$89.17

$128.45 discount

UndervaluedFair: $217.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BF-B2 strengths · Avg: 8.0/10
P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

DEO4 strengths · Avg: 9.0/10
Return on EquityProfitability
51.8%10/10

Every $100 of equity generates 52 in profit

Operating MarginProfitability
31.3%10/10

Strong operational efficiency at 31.3%

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.51B8/10

Generating 1.5B in free cash flow

Areas to Watch

BF-B3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

PEG RatioValuation
4.222/10

Expensive relative to growth rate

EPS GrowthGrowth
-62.7%2/10

Earnings declined 62.7%

DEO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
2.9%4/10

2.9% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
76.9x2/10

Trading at 76.9x book value

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : BF-B

The strongest argument for BF-B centers on P/E Ratio, Operating Margin. Profitability is solid with margins at 18.2% and operating margin at 23.3%.

Bull Case : DEO

The strongest argument for DEO centers on Return on Equity, Operating Margin, PEG Ratio. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bear Case : BF-B

The primary concerns for BF-B are Revenue Growth, PEG Ratio, EPS Growth.

Bear Case : DEO

The primary concerns for DEO are EPS Growth, Piotroski F-Score, Price/Book. Debt-to-equity of 2.09 is elevated, increasing financial risk.

Key Dynamics to Monitor

BF-B profiles as a value stock while DEO is a declining play — different risk/reward profiles.

BF-B carries more volatility with a beta of 0.34 — expect wider price swings.

BF-B is growing revenue faster at 2.0% — sustainability is the question.

DEO generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

DEO scores higher overall (56/100 vs 54/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Brown-Forman Corporation

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

The Brown Forman Corporation is one of the largest American-owned companies in the spirits and wine business. Based in Louisville, Kentucky, it manufactures several well known brands throughout the world, including Jack Daniel's, Early Times, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Finlandia, Herradura, Korbel, and Chambord.

Visit Website →

Diageo PLC ADR

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.

Visit Website →

Want to dig deeper into these stocks?