Head to Head Analysis: Diageo (NYSE:DEO) versus Thai Beverage Public (OTCMKTS:TBVPF)

Diageo (NYSE:DEO) and Thai Beverage Public (OTCMKTS:TBVPF) are both consumer defensive companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Dividends

Diageo pays an annual dividend of $5.01 per share and has a dividend yield of 3.8%. Thai Beverage Public pays an annual dividend of $0.41 per share and has a dividend yield of 101.3%. Diageo pays out 71.4% of its earnings in the form of a dividend. Thai Beverage Public pays out 46.5% 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. Thai Beverage Public is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Diageo and Thai Beverage Public’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diageo	N/A	N/A	N/A
Thai Beverage Public	N/A	N/A	N/A

Earnings and Valuation

This table compares Diageo and Thai Beverage Public’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diageo	$20.27 billion	3.65	$4.50 billion	$7.02	18.96
Thai Beverage Public	N/A	N/A	N/A	$0.87	0.46

Diageo has higher revenue and earnings than Thai Beverage Public. Thai Beverage Public is trading at a lower price-to-earnings ratio than Diageo, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Diageo and Thai Beverage Public, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diageo	3	4	1	0	1.75
Thai Beverage Public	0	0	0	0	N/A

Diageo presently has a consensus target price of $185.00, indicating a potential upside of 38.97%. Given Diageo’s higher probable upside, equities analysts clearly believe Diageo is more favorable than Thai Beverage Public.

Insider and Institutional Ownership

9.0% of Diageo shares are owned by institutional investors. Comparatively, 8.7% of Thai Beverage Public shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Diageo beats Thai Beverage Public on 6 of the 8 factors compared between the two stocks.

About Diageo

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.

About Thai Beverage Public

Thai Beverage Public Company Limited, together with its subsidiaries, produces and distributes alcoholic and non-alcoholic beverages, and food products worldwide. It operates through Spirits, Beer, Non-Alcoholic Beverages, and Food segments. The company offers liquor, beer, malt, and yeast products; spirits, including brown spirits, white spirits, herbs, and other products; and non-alcoholic beverages comprising drinking and soda water, electrolyte beverages, energy drinks, green and herbal tea, ready-to-drink coffee, and soft drinks; tea, isotonics, soya drinks, Asian and sparkling drinks, cordials, water, pasteurized milk, UHT milk, sterilized milk, yoghurt, canned milk, pasteurized juice, ready-to-drink juice, ice cream, and cereal bars. The company also provides chilled and frozen food products; fertilizers, feeds, bricks, and oak barrels; and digital and technology services. In addition, it is involved in the trading of molasses; provision of transportation and distribution, logistics, recycling, advertising and marketing, consultancy, asset and brands management, public cold storage, and human resources and organization development services; operation of restaurants, bakeries, and social enterprise; and production and distribution of biogas. Further, the company engages in the trading of bottles and supplies; wholesale and trading of beverages; and production of metal and plastic packaging businesses. Additionally, it engages in trademark holding and production of beer concentrates; e-commerce business; asset management business; provision of marketing management consulting; development, rental, and investment in properties; mechanical equipment manufacturing; warehousing business; trading of chemical and packaging materials; manufacture of equipment used in food manufacturing; and installation and maintenance of machinery system and equipment. The company was incorporated in 2003 and is based in Bangkok, Thailand.