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DEO vs MDLZ

DEO
Diageo plc
BEARISH
Price
$79.29
Market Cap
$44.08B
Sector
Consumer Defensive
AI Confidence
85%
MDLZ
Mondelez International, Inc.
NEUTRAL
Price
$57.42
Market Cap
$73.7B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
DEO
18.31
MDLZ
30.38
Forward P/E
DEO
12.32
MDLZ
17.1
P/B Ratio
DEO
68.44
MDLZ
2.85
P/S Ratio
DEO
2.23
MDLZ
1.91
EV/EBITDA
DEO
32.41
MDLZ
18.74

Profitability

Gross Margin
DEO
60.0%
MDLZ
28.38%
Operating Margin
DEO
31.29%
MDLZ
9.53%
Profit Margin
DEO
12.19%
MDLZ
6.36%
ROE
DEO
19.72%
MDLZ
9.33%
ROA
DEO
7.21%
MDLZ
3.24%

Growth

Revenue Growth
DEO
-4.0%
MDLZ
9.3%
Earnings Growth
DEO
2.9%
MDLZ
-60.4%

Financial Health

Debt/Equity
DEO
1.77
MDLZ
0.85
Current Ratio
DEO
1.6
MDLZ
0.59
Quick Ratio
DEO
0.57
MDLZ
0.32

Dividends

Dividend Yield
DEO
4.19%
MDLZ
3.47%
Payout Ratio
DEO
95.64%
MDLZ
102.65%

AI Verdict

DEO BEARISH

Despite a strong Piotroski F-Score of 7/9 indicating operational stability, DEO is exhibiting severe fundamental decay and technical weakness. The stock is trading at a significant premium to both its Graham Number ($10.62) and Intrinsic Value ($49.15), while facing a catastrophic collapse in earnings growth (-62.3% YoY EPS). A dividend payout ratio of 95.64% is unsustainable given the negative revenue growth and crashing quarterly EPS, suggesting a high risk of a dividend cut. The technical trend is completely bearish (0/100), and long-term price performance is dismal (-49.1% over 5 years).

Strengths
Strong Piotroski F-Score (7/9) suggesting solid short-term financial health
High Gross Margins (60.00%) and Operating Margins (31.29%)
Robust Return on Equity (ROE) of 19.72%
Risks
Unsustainable dividend payout ratio (95.64%)
Severe earnings contraction (-78.6% Q/Q EPS growth)
Negative revenue growth (-4.00% YoY)
MDLZ NEUTRAL

MDLZ presents a conflicted profile with a stable Piotroski F-Score of 4/9 but severe valuation gaps, trading at $57.42 against a Graham Number of $29.28 and an Intrinsic Value of $13.23. While revenue growth remains robust at 9.3%, the company is facing a critical earnings collapse (-60.4% YoY) and an unsustainable dividend payout ratio of 102.65%. The strong analyst 'buy' consensus and consistent earnings beat history are offset by poor liquidity ratios and a bearish technical trend.

Strengths
Consistent earnings beat track record over 25 quarters
Strong top-line revenue growth (9.3% YoY)
Attractive PEG ratio of 0.95 suggesting growth is undervalued relative to P/E
Risks
Unsustainable dividend payout ratio (102.65%) exceeding net income
Severe short-term earnings contraction (-60.4% YoY)
Poor liquidity position with a Current Ratio of 0.59 and Quick Ratio of 0.32

Compare Another Pair

DEO vs MDLZ: Head-to-Head Comparison

This page compares Diageo plc (DEO) and Mondelez International, Inc. (MDLZ) 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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