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BF-B vs PG

BF-B
Brown-Forman Corporation
NEUTRAL
Price
$27.57
Market Cap
$12.77B
Sector
Consumer Defensive
AI Confidence
68%
PG
The Procter & Gamble Company
BEARISH
Price
$145.71
Market Cap
$340.49B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
BF-B
16.31
PG
21.59
Forward P/E
BF-B
15.94
PG
20.23
P/B Ratio
BF-B
3.13
PG
6.48
P/S Ratio
BF-B
3.28
PG
3.99
EV/EBITDA
BF-B
12.86
PG
14.76

Profitability

Gross Margin
BF-B
59.11%
PG
51.19%
Operating Margin
BF-B
29.44%
PG
26.3%
Profit Margin
BF-B
20.83%
PG
19.3%
ROE
BF-B
20.67%
PG
31.56%
ROA
BF-B
8.21%
PG
10.9%

Growth

Revenue Growth
BF-B
-5.4%
PG
1.5%
Earnings Growth
BF-B
-13.9%
PG
-5.4%

Financial Health

Debt/Equity
BF-B
0.64
PG
0.69
Current Ratio
BF-B
2.97
PG
0.72
Quick Ratio
BF-B
0.96
PG
0.47

Dividends

Dividend Yield
BF-B
3.26%
PG
2.92%
Payout Ratio
BF-B
52.98%
PG
61.88%

AI Verdict

BF-B NEUTRAL

The Advanced Deterministic Scorecard shows a Piotroski F-Score of 6/9, indicating stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. Despite solid profitability metrics like a 29.44% operating margin and 20.67% ROE, the company faces declining revenue and earnings, with YoY revenue down 5.40% and earnings down 13.90%. The stock trades above the Graham Number of $18.30 at $27.57, supported by a 3.26% dividend yield and analyst target of $30.26, but weak recent earnings surprises and insider selling temper optimism.

Strengths
Strong profitability with operating margin of 29.44% and ROE of 20.67%, well above sector averages
Healthy balance sheet with a current ratio of 2.97 and moderate debt/equity of 0.64
Piotroski F-Score of 6 indicates stable financial condition
Risks
Revenue and earnings declining YoY by 5.40% and 13.90% respectively, signaling operational headwinds
Recent earnings misses: 0 out of last 4 quarters beat estimates, with an average surprise of -4.36%
Insider selling activity: CEO sold $0.15M in shares, indicating bearish sentiment
PG BEARISH

PG exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but it is severely overvalued relative to its deterministic baselines. The current price of $145.71 represents a massive premium over the Graham Number ($58.45) and Intrinsic Value ($47.25), while a PEG ratio of 3.92 indicates the valuation is disconnected from its stagnant growth. Negative earnings growth (-5.40% YoY) combined with bearish insider activity and a 0/100 technical trend suggests significant downside risk despite the company's operational efficiency.

Strengths
Exceptional Return on Equity (ROE) of 31.56%
Strong gross margins (51.19%) and operating margins (26.30%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Extreme valuation premium over Graham and Intrinsic value estimates
Negative earnings growth (-5.40% YoY and -6.70% Q/Q)
Weak liquidity ratios with a Current Ratio of 0.72 and Quick Ratio of 0.47

Compare Another Pair

BF-B vs PG: Head-to-Head Comparison

This page compares Brown-Forman Corporation (BF-B) and The Procter & Gamble Company (PG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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