Seek Returns logo

DEO vs. SJM: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at DEO and SJM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

DEO trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, SJM is a standard domestic listing.

SymbolDEOSJM
Company NameDiageo plcThe J. M. Smucker Company
CountryUnited KingdomUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryBeveragesFood Products
Market Capitalization61.65 billion USD12.06 billion USD
ExchangeNYSENYSE
Listing DateMarch 14, 1991October 31, 1994
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of DEO and SJM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

DEO vs. SJM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolDEOSJM
5-Day Price Return3.96%1.86%
13-Week Price Return-2.64%0.45%
26-Week Price Return-8.46%9.51%
52-Week Price Return-16.52%-3.72%
Month-to-Date Return11.28%5.28%
Year-to-Date Return-18.74%2.62%
10-Day Avg. Volume4.78M1.36M
3-Month Avg. Volume3.52M1.76M
3-Month Volatility27.58%38.70%
Beta0.560.24

Profitability

Return on Equity (TTM)

DEO

35.39%

Beverages Industry

Max
49.46%
Q3
24.91%
Median
11.13%
Q1
5.27%
Min
-5.93%

In the upper quartile for the Beverages industry, DEO’s Return on Equity of 35.39% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

SJM

-17.34%

Food Products Industry

Max
27.15%
Q3
15.66%
Median
10.47%
Q1
7.82%
Min
-2.46%

SJM has a negative Return on Equity of -17.34%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

DEO vs. SJM: A comparison of their Return on Equity (TTM) against their respective Beverages and Food Products industry benchmarks.

Net Profit Margin (TTM)

DEO

17.79%

Beverages Industry

Max
21.86%
Q3
12.24%
Median
8.70%
Q1
5.33%
Min
-4.40%

A Net Profit Margin of 17.79% places DEO in the upper quartile for the Beverages industry, signifying strong profitability and more effective cost management than most of its peers.

SJM

-14.10%

Food Products Industry

Max
18.44%
Q3
9.92%
Median
6.38%
Q1
4.13%
Min
-0.92%

SJM has a negative Net Profit Margin of -14.10%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

DEO vs. SJM: A comparison of their Net Profit Margin (TTM) against their respective Beverages and Food Products industry benchmarks.

Operating Profit Margin (TTM)

DEO

28.58%

Beverages Industry

Max
29.32%
Q3
18.25%
Median
13.42%
Q1
10.58%
Min
0.71%

An Operating Profit Margin of 28.58% places DEO in the upper quartile for the Beverages industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

SJM

-7.38%

Food Products Industry

Max
24.83%
Q3
14.27%
Median
9.73%
Q1
6.26%
Min
-0.10%

SJM has a negative Operating Profit Margin of -7.38%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

DEO vs. SJM: A comparison of their Operating Profit Margin (TTM) against their respective Beverages and Food Products industry benchmarks.

Profitability at a Glance

SymbolDEOSJM
Return on Equity (TTM)35.39%-17.34%
Return on Assets (TTM)7.78%-6.45%
Net Profit Margin (TTM)17.79%-14.10%
Operating Profit Margin (TTM)28.58%-7.38%
Gross Profit Margin (TTM)60.45%38.89%

Financial Strength

Current Ratio (MRQ)

DEO

1.60

Beverages Industry

Max
3.38
Q3
1.97
Median
1.21
Q1
0.86
Min
0.53

DEO’s Current Ratio of 1.60 aligns with the median group of the Beverages industry, indicating that its short-term liquidity is in line with its sector peers.

SJM

0.81

Food Products Industry

Max
3.80
Q3
2.40
Median
1.61
Q1
1.28
Min
0.55

SJM’s Current Ratio of 0.81 falls into the lower quartile for the Food Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

DEO vs. SJM: A comparison of their Current Ratio (MRQ) against their respective Beverages and Food Products industry benchmarks.

Debt-to-Equity Ratio (MRQ)

DEO

2.11

Beverages Industry

Max
2.11
Q3
1.23
Median
0.79
Q1
0.32
Min
0.00

DEO’s leverage is in the upper quartile of the Beverages industry, with a Debt-to-Equity Ratio of 2.11. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

SJM

1.26

Food Products Industry

Max
1.87
Q3
0.90
Median
0.48
Q1
0.24
Min
0.00

SJM’s leverage is in the upper quartile of the Food Products industry, with a Debt-to-Equity Ratio of 1.26. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

DEO vs. SJM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Beverages and Food Products industry benchmarks.

Interest Coverage Ratio (TTM)

DEO

13.11

Beverages Industry

Max
78.96
Q3
40.67
Median
9.62
Q1
3.59
Min
0.81

DEO’s Interest Coverage Ratio of 13.11 is positioned comfortably within the norm for the Beverages industry, indicating a standard and healthy capacity to cover its interest payments.

SJM

-1.69

Food Products Industry

Max
70.39
Q3
32.08
Median
9.51
Q1
4.55
Min
-1.69

SJM has a negative Interest Coverage Ratio of -1.69. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

DEO vs. SJM: A comparison of their Interest Coverage Ratio (TTM) against their respective Beverages and Food Products industry benchmarks.

Financial Strength at a Glance

SymbolDEOSJM
Current Ratio (MRQ)1.600.81
Quick Ratio (MRQ)0.670.35
Debt-to-Equity Ratio (MRQ)2.111.26
Interest Coverage Ratio (TTM)13.11-1.69

Growth

Revenue Growth

DEO vs. SJM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

DEO vs. SJM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

DEO

3.69%

Beverages Industry

Max
6.93%
Q3
4.51%
Median
3.09%
Q1
2.03%
Min
0.00%

DEO’s Dividend Yield of 3.69% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

SJM

3.80%

Food Products Industry

Max
7.43%
Q3
4.12%
Median
2.67%
Q1
1.57%
Min
0.00%

SJM’s Dividend Yield of 3.80% is consistent with its peers in the Food Products industry, providing a dividend return that is standard for its sector.

DEO vs. SJM: A comparison of their Dividend Yield (TTM) against their respective Beverages and Food Products industry benchmarks.

Dividend Payout Ratio (TTM)

DEO

63.78%

Beverages Industry

Max
143.36%
Q3
99.22%
Median
67.03%
Q1
40.31%
Min
0.00%

DEO’s Dividend Payout Ratio of 63.78% is within the typical range for the Beverages industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SJM

59.47%

Food Products Industry

Max
202.50%
Q3
109.53%
Median
67.28%
Q1
39.33%
Min
0.00%

SJM’s Dividend Payout Ratio of 59.47% is within the typical range for the Food Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

DEO vs. SJM: A comparison of their Dividend Payout Ratio (TTM) against their respective Beverages and Food Products industry benchmarks.

Dividend at a Glance

SymbolDEOSJM
Dividend Yield (TTM)3.69%3.80%
Dividend Payout Ratio (TTM)63.78%59.47%

Valuation

Price-to-Earnings Ratio (TTM)

DEO

17.30

Beverages Industry

Max
41.48
Q3
28.35
Median
19.09
Q1
15.36
Min
3.14

DEO’s P/E Ratio of 17.30 is within the middle range for the Beverages industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

SJM

--

Food Products Industry

Max
35.81
Q3
22.88
Median
17.13
Q1
13.91
Min
2.77

P/E Ratio data for SJM is currently unavailable.

DEO vs. SJM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Beverages and Food Products industry benchmarks.

Price-to-Sales Ratio (TTM)

DEO

3.08

Beverages Industry

Max
3.90
Q3
2.38
Median
1.54
Q1
0.84
Min
0.41

DEO’s P/S Ratio of 3.08 is in the upper echelon for the Beverages industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

SJM

1.37

Food Products Industry

Max
3.63
Q3
1.86
Median
1.14
Q1
0.68
Min
0.12

SJM’s P/S Ratio of 1.37 aligns with the market consensus for the Food Products industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

DEO vs. SJM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Beverages and Food Products industry benchmarks.

Price-to-Book Ratio (MRQ)

DEO

7.45

Beverages Industry

Max
6.29
Q3
3.58
Median
2.19
Q1
1.68
Min
0.91

At 7.45, DEO’s P/B Ratio is at an extreme premium to the Beverages industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

SJM

2.03

Food Products Industry

Max
5.01
Q3
2.76
Median
1.98
Q1
1.26
Min
0.52

SJM’s P/B Ratio of 2.03 is within the conventional range for the Food Products industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

DEO vs. SJM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Beverages and Food Products industry benchmarks.

Valuation at a Glance

SymbolDEOSJM
Price-to-Earnings Ratio (TTM)17.30--
Price-to-Sales Ratio (TTM)3.081.37
Price-to-Book Ratio (MRQ)7.452.03
Price-to-Free Cash Flow Ratio (TTM)23.0514.67