DEO vs STZ

For growth investors, Constellation Brands, Inc.

(STZ) is the stronger pick with 2. 5% 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. 1x forward), making it the more compelling value choice. Analysts rate Constellation Brands, Inc. (STZ) a "Buy" — based on 46 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.

On forward P/E, Constellation Brands, Inc.

is actually cheaper at 12. 9x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Constellation Brands, Inc.

(STZ) delivered a total return of -29. 4%, compared to -42. 8% for Diageo plc (DEO). Over 10 years, the gap is even starker: STZ returned +15. 2% versus DEO's +11. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Constellation Brands, Inc.

(STZ) is the lower-risk stock at 0. 26β versus Diageo plc's 0. 37β — meaning DEO is approximately 40% more volatile than STZ relative to the S&P 500. On balance sheet safety, Constellation Brands, Inc. (STZ) carries a lower debt/equity ratio of 170% versus 185% for Diageo plc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Constellation Brands, Inc.

(STZ) is pulling ahead at 2. 5% versus -0. 1% for Diageo plc (DEO). On earnings-per-share growth, the picture is similar: Diageo plc grew EPS -38. 7% year-over-year, compared to -104. 8% for Constellation Brands, Inc.. 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.

Diageo plc (DEO) is the more profitable company, earning 11.

6% net margin versus -0. 8% for Constellation Brands, Inc. — meaning it keeps 11. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STZ leads at 35. 5% 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.

On forward earnings alone, Constellation Brands, Inc.

(STZ) trades at 12. 9x forward P/E versus 18. 1x for Diageo plc — 5. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DEO: 46. 6% to $124. 00.

All stocks in this comparison pay dividends.

Diageo plc (DEO) offers the highest yield at 4. 9%, versus 2. 6% for Constellation Brands, Inc. (STZ).

For long-horizon retirement investors, Constellation Brands, Inc.

(STZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 26), 2. 6% yield). Both have compounded well over 10 years (STZ: +15. 2%, DEO: +11. 5%), 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.

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; STZ 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.