Ambev (NYSE: ABEV) and Boston Beer Company, Inc. (The) (NYSE:SAM) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitabiliy and dividends.

Profitability

This table compares Ambev and Boston Beer Company, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ambev 27.04% 23.90% 14.23%
Boston Beer Company, Inc. (The) 9.42% 19.73% 14.17%

Insider & Institutional Ownership

7.8% of Ambev shares are owned by institutional investors. Comparatively, 71.5% of Boston Beer Company, Inc. (The) shares are owned by institutional investors. 28.5% of Boston Beer Company, Inc. (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Ambev has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Boston Beer Company, Inc. (The) has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ambev and Boston Beer Company, Inc. (The)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ambev $13.70 billion 6.75 $5.49 billion $0.24 24.54
Boston Beer Company, Inc. (The) $879.31 million 1.85 $180.47 million $6.74 19.70

Ambev has higher revenue and earnings than Boston Beer Company, Inc. (The). Boston Beer Company, Inc. (The) is trading at a lower price-to-earnings ratio than Ambev, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Ambev and Boston Beer Company, Inc. (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ambev 0 3 2 0 2.40
Boston Beer Company, Inc. (The) 3 4 1 0 1.75

Ambev presently has a consensus price target of $6.20, indicating a potential upside of 5.26%. Boston Beer Company, Inc. (The) has a consensus price target of $145.86, indicating a potential upside of 9.83%. Given Boston Beer Company, Inc. (The)’s higher probable upside, analysts clearly believe Boston Beer Company, Inc. (The) is more favorable than Ambev.

Summary

Ambev beats Boston Beer Company, Inc. (The) on 10 of the 14 factors compared between the two stocks.

Ambev Company Profile

Ambev SA, formerly Inbev Participacoes Societarias SA, is a Brazil-based company engaged in the brewing sector. The Company produces and sells beer, carbonated soft drinks (CSDs) and other non-alcoholic and non-carbonated (NANC) beverages across the Americas. The Company’s activities are divided into three segments: Latin America North, including sell of beer, CSD and NANC drinks in Brazil, as well as operations in Dominican Republic, Saint Vincent, Antigua, Dominica, Guatemala, El Salvador, Nicaragua and Cuba; Latin America South, distributing products in Argentina, Bolivia, Paraguay, Uruguay, Chile, Ecuador, Peru and Colombia, and Canada, represented by Labatt’s operations, which comprises sales in Canada. The Company markets products under various brand names, such as Adriatica, Brahma, Leffe, Budweiser, Corona, PepsiCo and Lipton. It is a subsidiary of Interbrew International BV.

Boston Beer Company, Inc. (The) Company Profile

The Boston Beer Company, Inc. is a craft brewer in the United States. The Company is engaged in the business of producing and selling alcohol beverages primarily in the domestic market and in selected international markets. The Company operates through two segments: Boston Beer Company segment, and A&S Brewing Collaborative segment. The Boston Beer Company segment comprises of the Company’s Samuel Adams, Twisted Tea, Angry Orchard and Truly Spiked & Sparkling brands. The A&S Brewing Collaborative segment comprises of The Traveler Beer Company, Coney Island Brewing Company, Angel City Brewing Company and Concrete Beach Brewing Company. Both segments sell low alcohol beverages. The Company produces malt beverages and hard cider at the Company-owned breweries and under contract arrangements at other brewery locations. As of December 31, 2016, the Company sold its products to a network of approximately 350 wholesalers in the United States and to a network of distributors.

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