DEO
Diageo plc
Beverages - Wineries & Distilleries
Market Cap$46.86B
5Y Perf.-40.0%
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Stock Comparison
DEO vs BUD
Revenue, margins, valuation, and 5-year total return — side by side.
BUD
Anheuser-Busch InBev SA/NV
Beverages - Alcoholic
Market Cap$137.47B
5Y Perf.+70.4%
DEO vs BUD — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | DEO | BUD |
|---|---|---|
| Industry | Beverages - Wineries & Distilleries | Beverages - Alcoholic |
| Market Cap | $46.86B | $137.47B |
| Revenue (TTM) | $37.37B | $119.82B |
| Net Income (TTM) | $5.49B | $12.57B |
| Gross Margin | 60.0% | 55.2% |
| Operating Margin | 27.9% | 31.7% |
| Forward P/E | 18.0x | 18.7x |
| Total Debt | $24.40B | $72.17B |
| Cash & Equiv. | $2.20B | $11.17B |
DEO vs BUD — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
DEO
BUD
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Diageo plc (DEO) | 100 | 60.0 | -40.0% |
| Anheuser-Busch InBe… (BUD) | 100 | 170.4 | +70.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: DEO vs BUD
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: DEO leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Anheuser-Busch InBev SA/NV is the stronger pick specifically for growth and revenue expansion and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
DEO
Diageo plc
The Income Pick
DEO carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 12 yrs, beta 0.43, yield 4.9%
- 10.8% 10Y total return vs BUD's -23.9%
- Beta 0.43, yield 4.9%, current ratio 1.63x
Best for: income & stability and long-term compounding
BUD
Anheuser-Busch InBev SA/NV
The Growth Play
BUD is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 0.7%, EPS growth 10.0%, 3Y rev CAGR 3.2%
- Lower volatility, beta 0.33, Low D/E 81.4%, current ratio 0.70x
- 0.7% revenue growth vs DEO's -0.1%
Best for: growth exposure and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | BUD | 0.7% revenue growth vs DEO's -0.1% |
| Value | DEO | Lower P/E (18.0x vs 18.7x) |
| Quality / Margins | DEO | 14.7% margin vs BUD's 10.5% |
| Stability / Safety | BUD | Beta 0.33 vs DEO's 0.43, lower leverage |
| Dividends | DEO | 4.9% yield, 12-year raise streak, vs BUD's 1.6% |
| Momentum (1Y) | BUD | +21.2% vs DEO's -24.1% |
| Efficiency (ROA) | DEO | 14.7% ROA vs BUD's 6.0%, ROIC 9.6% vs 7.5% |
DEO vs BUD — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2020
DEO vs BUD — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLBUDLAGGINGDEO
DEODiageo plc
2leads
BUDAnheuser-Busch InBev …
4leads
6 Total Categories
CATEGORYLEADERvs DEOMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
BUD4/6
Valuation MetricsMultiples, price ratios, and targets
BUD4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
DEO7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
BUD5/6
Risk & VolatilityBeta, volatility, and downside exposure
BUD2/2
Analyst OutlookRatings, price targets, and dividends
DEO2/2
Income & Cash Flow (Last 12 Months)
BUD leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
BUD is the larger business by revenue, generating $119.8B annually — 3.2x DEO's $37.4B. Profitability is closely matched — net margins range from 14.7% (DEO) to 10.5% (BUD). On growth, BUD holds the edge at +0.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DEODiageo plc | BUDAnheuser-Busch In… |
|---|---|---|
| RevenueTrailing 12 months | $37.4B | $119.8B |
| EBITDAEarnings before interest/tax | $11.6B | $38.8B |
| Net IncomeAfter-tax profit | $5.5B | $12.6B |
| Free Cash FlowCash after capex | $7.7B | $32.2B |
| Gross MarginGross profit ÷ Revenue | +60.0% | +55.2% |
| Operating MarginEBIT ÷ Revenue | +27.9% | +31.7% |
| Net MarginNet income ÷ Revenue | +14.7% | +10.5% |
| FCF MarginFCF ÷ Revenue | +20.6% | +26.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | -29.1% | +0.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -24.1% | +32.3% |
BUD leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
BUD leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 19.9x trailing earnings, DEO trades at a 29% valuation discount to BUD's 27.9x P/E. On an enterprise value basis, BUD's 9.4x EV/EBITDA is more attractive than DEO's 11.4x.
| Metric | DEODiageo plc | BUDAnheuser-Busch In… |
|---|---|---|
| Market CapShares × price | $46.9B | $137.5B |
| Enterprise ValueMkt cap + debt − cash | $69.1B | $198.5B |
| Trailing P/EPrice ÷ TTM EPS | 19.88x | 27.93x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.01x | 18.69x |
| PEG RatioP/E ÷ EPS growth rate | 2.67x | — |
| EV / EBITDAEnterprise value multiple | 11.41x | 9.44x |
| Price / SalesMarket cap ÷ Revenue | 2.31x | 2.30x |
| Price / BookPrice ÷ Book value/share | 3.56x | 1.84x |
| Price / FCFMarket cap ÷ FCF | 17.45x | 12.28x |
BUD leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
DEO leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
DEO delivers a 54.0% return on equity — every $100 of shareholder capital generates $54 in annual profit, vs $14 for BUD. BUD carries lower financial leverage with a 0.81x debt-to-equity ratio, signaling a more conservative balance sheet compared to DEO's 1.85x. On the Piotroski fundamental quality scale (0–9), BUD scores 9/9 vs DEO's 5/9, reflecting strong financial health.
| Metric | DEODiageo plc | BUDAnheuser-Busch In… |
|---|---|---|
| ROE (TTM)Return on equity | +54.0% | +13.8% |
| ROA (TTM)Return on assets | +14.7% | +6.0% |
| ROICReturn on invested capital | +9.6% | +7.5% |
| ROCEReturn on capital employed | +11.7% | +8.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 9 |
| Debt / EquityFinancial leverage | 1.85x | 0.81x |
| Net DebtTotal debt minus cash | $22.2B | $61.0B |
| Cash & Equiv.Liquid assets | $2.2B | $11.2B |
| Total DebtShort + long-term debt | $24.4B | $72.2B |
| Interest CoverageEBIT ÷ Interest expense | 5.71x | 2.53x |
DEO leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
BUD leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in BUD five years ago would be worth $11,300 today (with dividends reinvested), compared to $5,656 for DEO. Over the past 12 months, BUD leads with a +21.2% total return vs DEO's -24.1%. The 3-year compound annual growth rate (CAGR) favors BUD at 8.8% vs DEO's -20.0% — a key indicator of consistent wealth creation.
| Metric | DEODiageo plc | BUDAnheuser-Busch In… |
|---|---|---|
| YTD ReturnYear-to-date | -2.3% | +27.2% |
| 1-Year ReturnPast 12 months | -24.1% | +21.2% |
| 3-Year ReturnCumulative with dividends | -48.8% | +28.7% |
| 5-Year ReturnCumulative with dividends | -43.4% | +13.0% |
| 10-Year ReturnCumulative with dividends | +10.8% | -23.9% |
| CAGR (3Y)Annualised 3-year return | -20.0% | +8.8% |
BUD leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
BUD leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
BUD is the less volatile stock with a 0.33 beta — it tends to amplify market swings less than DEO's 0.43 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BUD currently trades 96.4% from its 52-week high vs DEO's 72.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DEODiageo plc | BUDAnheuser-Busch In… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.43x | 0.33x |
| 52-Week HighHighest price in past year | $116.69 | $82.91 |
| 52-Week LowLowest price in past year | $72.46 | $56.97 |
| % of 52W HighCurrent price vs 52-week peak | +72.2% | +96.4% |
| RSI (14)Momentum oscillator 0–100 | 59.7 | 64.2 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 2.0M |
BUD leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
DEO leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates DEO as "Hold" and BUD as "Buy". Consensus price targets imply 47.1% upside for DEO (target: $124) vs 11.4% for BUD (target: $89). For income investors, DEO offers the higher dividend yield at 4.89% vs BUD's 1.64%.
| Metric | DEODiageo plc | BUDAnheuser-Busch In… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $124.00 | $89.00 |
| # AnalystsCovering analysts | 35 | 45 |
| Dividend YieldAnnual dividend ÷ price | +4.9% | +1.6% |
| Dividend StreakConsecutive years of raises | 12 | 0 |
| Dividend / ShareAnnual DPS | $4.13 | $1.31 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.7% |
DEO leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
BUD leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). DEO leads in 2 (Profitability & Efficiency, Analyst Outlook).
Best OverallAnheuser-Busch InBev SA/NV (BUD)Leads 4 of 6 categories
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DEO vs BUD: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is DEO or BUD a better buy right now?
For growth investors, Anheuser-Busch InBev SA/NV (BUD) is the stronger pick with 0.
7% revenue growth year-over-year, versus -0. 1% for Diageo plc (DEO). Diageo plc (DEO) offers the better valuation at 19. 9x trailing P/E (18. 0x forward), making it the more compelling value choice. Analysts rate Anheuser-Busch InBev SA/NV (BUD) a "Buy" — based on 45 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DEO or BUD?
On trailing P/E, Diageo plc (DEO) is the cheapest at 19.
9x versus Anheuser-Busch InBev SA/NV at 27. 9x. On forward P/E, Diageo plc is actually cheaper at 18. 0x.
03Which is the better long-term investment — DEO or BUD?
Over the past 5 years, Anheuser-Busch InBev SA/NV (BUD) delivered a total return of +13.
0%, compared to -43. 4% for Diageo plc (DEO). Over 10 years, the gap is even starker: DEO returned +10. 8% versus BUD's -23. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DEO or BUD?
By beta (market sensitivity over 5 years), Anheuser-Busch InBev SA/NV (BUD) is the lower-risk stock at 0.
33β versus Diageo plc's 0. 43β — meaning DEO is approximately 30% more volatile than BUD relative to the S&P 500. On balance sheet safety, Anheuser-Busch InBev SA/NV (BUD) carries a lower debt/equity ratio of 81% versus 185% for Diageo plc — giving it more financial flexibility in a downturn.
05Which is growing faster — DEO or BUD?
By revenue growth (latest reported year), Anheuser-Busch InBev SA/NV (BUD) is pulling ahead at 0.
7% versus -0. 1% for Diageo plc (DEO). On earnings-per-share growth, the picture is similar: Anheuser-Busch InBev SA/NV grew EPS 10. 0% year-over-year, compared to -38. 7% for Diageo plc. Over a 3-year CAGR, DEO leads at 9. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — DEO or BUD?
Diageo plc (DEO) is the more profitable company, earning 11.
6% net margin versus 9. 8% for Anheuser-Busch InBev SA/NV — meaning it keeps 11. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BUD leads at 25. 9% versus 21. 4% for DEO. At the gross margin level — before operating expenses — DEO leads at 60. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is DEO or BUD more undervalued right now?
On forward earnings alone, Diageo plc (DEO) trades at 18.
0x forward P/E versus 18. 7x for Anheuser-Busch InBev SA/NV — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DEO: 47. 1% to $124. 00.
08Which pays a better dividend — DEO or BUD?
All stocks in this comparison pay dividends.
Diageo plc (DEO) offers the highest yield at 4. 9%, versus 1. 6% for Anheuser-Busch InBev SA/NV (BUD).
09Is DEO or BUD better for a retirement portfolio?
For long-horizon retirement investors, Anheuser-Busch InBev SA/NV (BUD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
33), 1. 6% yield). Both have compounded well over 10 years (BUD: -23. 9%, DEO: +10. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between DEO and BUD?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: DEO is a mid-cap income-oriented stock; BUD is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(DEO: -29.1% · BUD: 0.4%)Net Margin>
%
(DEO: 14.7% · BUD: 10.5%)P/E Ratio<
x
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