Quick verdict: DEO vs MDLZ in 2026

In this deo vs mdlz stock comparison 2026, Diageo plc (DEO) holds an overall edge, leading in 8 out of 12 comparable metrics, particularly in valuation and profitability. Mondelez International, Inc. (MDLZ) emerges as the growth leader with its positive revenue momentum, while DEO offers a more attractive value proposition and significantly higher margins. MDLZ is the clear analyst favorite with a higher percentage of buy ratings, yet DEO presents substantially greater implied upside from both analyst targets and discounted cash flow models. This is not investment advice.

DEO vs MDLZ: key metrics side by side

Full side-by-side comparison of DEO and MDLZ across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

DEO vs MDLZ valuation comparison

When considering the deo vs mdlz valuation, Diageo (DEO) appears significantly more attractive based on its trailing twelve-month (TTM) P/E ratio of 19.09x, which is notably lower than Mondelez (MDLZ) at 30.25x. This suggests that investors are currently paying a higher premium for MDLZ’s earnings. While MDLZ holds a slight edge in terms of Price-to-Book (P/B) ratio at 3.07x compared to DEO’s 3.99x, the P/E difference strongly positions DEO as the cheaper option when valuing earnings power.

Furthermore, the Discounted Cash Flow (DCF) models indicate substantial upside potential for both companies, but DEO’s projected upside of +476.5% far surpasses MDLZ’s +113.7%. This profound difference in DCF suggests that DEO might be considerably undervalued relative to its intrinsic worth compared to MDLZ. For investors prioritizing value, especially considering the current market price relative to earnings and future cash flow potential, DEO presents a more compelling case in the ongoing DEO vs MDLZ fundamentals and valuation discussion.

DEO vs MDLZ growth comparison

In a direct DEO vs MDLZ growth comparison, Mondelez International (MDLZ) clearly exhibits stronger revenue momentum. MDLZ reported a year-over-year revenue growth of +5.8%, indicating a healthy expansion in its top line. In contrast, Diageo (DEO) experienced a slight contraction in revenue, with a growth rate of -0.1% over the same period. This stark difference in revenue growth positions MDLZ as the more dynamic company in terms of market expansion and capturing consumer demand in the current environment.

However, when evaluating the quality of this growth through profitability margins, DEO tells a different story. Despite its stagnant revenue, DEO boasts significantly higher net margins at 12.18% and an impressive EBITDA margin of 26.26%. MDLZ’s net margin stands at 6.65% and its EBITDA margin is 12.18%. This suggests that while MDLZ is growing faster, DEO is more efficient at converting its revenue into profit, implying superior operational management or stronger pricing power within its market segments. This dynamic is crucial for investors looking beyond just top-line expansion and considering the underlying financial health.

DEO vs MDLZ profitability

Diageo (DEO) demonstrates superior profitability when compared to Mondelez International (MDLZ), a critical aspect of any deo vs mdlz stock comparison 2026. DEO’s net margin stands at an impressive 12.18%, nearly double that of MDLZ’s 6.65%. This significant difference indicates that Diageo is far more efficient at converting its sales into actual profit, suggesting better cost control, stronger brand power allowing for premium pricing, or a more favorable product mix within its spirits and beer portfolio. Similarly, DEO’s EBITDA margin of 26.26% vastly outperforms MDLZ’s 12.18%, reinforcing Diageo’s operational efficiency and ability to generate robust earnings before non-operating expenses.

Regarding Free Cash Flow (FCF) yield, DEO also holds a slight advantage, generating a 3.51% FCF yield compared to MDLZ’s 3.27%. This higher FCF yield suggests that DEO is generating more cash relative to its market capitalization, which is a positive indicator for financial flexibility, potential for shareholder returns, and investment in future growth. While the Return on Equity (ROE) data is not available for either company, the comprehensive look at net margins, EBITDA margins, and FCF yield strongly positions DEO as the more profitable enterprise, effectively generating more cash from its operations.

Analyst ratings: DEO vs MDLZ

Examining the analyst ratings for DEO vs MDLZ reveals differing perspectives from the financial community. Mondelez International (MDLZ) garners a more favorable consensus from analysts, with 75.6% of the 41 analysts covering the stock issuing a “Buy” rating, leading to an overall “Buy” consensus. Their average price target for MDLZ is $67, representing a +9.2% upside from its current price of $61.33. This suggests a solid, albeit moderate, confidence in MDLZ’s near-term performance and growth trajectory.

On the other hand, Diageo (DEO) receives a more cautious “Hold” consensus, with only 42.9% of the 35 analysts recommending a “Buy.” Despite the lower percentage of buy ratings, the implied upside from analysts for DEO is substantially higher. The consensus price target for DEO is $124, which indicates a significant +48.7% potential upside from its current price of $83.37. This suggests that while fewer analysts are outright bullish on DEO, those who are see a much greater potential for capital appreciation, potentially due to a belief that the stock is currently undervalued or poised for a strong rebound.

Should I buy DEO or MDLZ stock in 2026?

Deciding whether should I buy deo or mdlz stock in 2026 depends heavily on an investor’s individual priorities, be it growth, value, or income. For growth-oriented investors, Mondelez International (MDLZ) presents a compelling case. With a revenue growth rate of +5.8% compared to Diageo’s -0.1%, MDLZ clearly demonstrates stronger top-line momentum. While DEO boasts superior margins, MDLZ’s ability to expand its sales base suggests it’s capturing more market share and adapting effectively to consumer preferences in its snack and beverage categories, making it potentially more attractive for those seeking dynamic expansion.

Value investors, however, might find Diageo (DEO) to be the more appealing option. DEO trades at a P/E ratio of 19.09x, significantly lower than MDLZ’s 30.25x, indicating that DEO’s earnings are available at a more reasonable price. Furthermore, DEO shows a staggering +476.5% upside according to its discounted cash flow (DCF) valuation, dwarfing MDLZ’s +113.7%. This substantial DCF upside, combined with a more favorable P/E, suggests that DEO might be considerably undervalued, offering a greater margin of safety and potential for capital appreciation over the long term for those focusing on deo vs mdlz fundamentals and valuation.

For income-focused investors, both DEO and MDLZ offer modest dividend yields typical of mature consumer defensive stocks. However, DEO provides a slightly higher dividend yield of 0.04% compared to MDLZ’s 0.03%. While both yields are low, DEO’s marginally higher payout, combined with its superior profitability metrics and free cash flow generation, could indicate a more robust capacity to sustain or potentially grow its dividends over time. Ultimately, the choice between these two consumer defensive giants hinges on a careful alignment with personal investment objectives. This is not investment advice.

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FAQ: DEO vs MDLZ