Anheuser-Busch Inbev SA (NYSE:BUD) and Molson Coors Brewing (TAP) Financial Contrast
Anheuser-Busch Inbev SA (NYSE: BUD) and Molson Coors Brewing (NYSE:TAP) are both large-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitabiliy and institutional ownership.
This is a summary of recent ratings and recommmendations for Anheuser-Busch Inbev SA and Molson Coors Brewing , as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Anheuser-Busch Inbev SA||1||6||10||0||2.53|
|Molson Coors Brewing||0||4||5||0||2.56|
Anheuser-Busch Inbev SA presently has a consensus target price of $129.75, suggesting a potential upside of 8.55%. Molson Coors Brewing has a consensus target price of $112.56, suggesting a potential upside of 25.27%. Given Molson Coors Brewing ‘s stronger consensus rating and higher probable upside, analysts clearly believe Molson Coors Brewing is more favorable than Anheuser-Busch Inbev SA.
Risk and Volatility
Anheuser-Busch Inbev SA has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Molson Coors Brewing has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
This table compares Anheuser-Busch Inbev SA and Molson Coors Brewing ‘s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Anheuser-Busch Inbev SA||7.37%||13.61%||4.40%|
|Molson Coors Brewing||19.78%||7.41%||3.05%|
Institutional and Insider Ownership
5.3% of Anheuser-Busch Inbev SA shares are held by institutional investors. Comparatively, 79.5% of Molson Coors Brewing shares are held by institutional investors. 4.5% of Anheuser-Busch Inbev SA shares are held by insiders. Comparatively, 2.5% of Molson Coors Brewing shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Anheuser-Busch Inbev SA pays an annual dividend of $3.07 per share and has a dividend yield of 2.6%. Molson Coors Brewing pays an annual dividend of $1.64 per share and has a dividend yield of 1.8%. Anheuser-Busch Inbev SA pays out 152.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Molson Coors Brewing pays out 16.4% of its earnings in the form of a dividend. Anheuser-Busch Inbev SA has raised its dividend for 7 consecutive years. Anheuser-Busch Inbev SA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Anheuser-Busch Inbev SA and Molson Coors Brewing ‘s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Anheuser-Busch Inbev SA||$52.42 billion||4.41||$18.90 billion||$2.02||59.17|
|Molson Coors Brewing||$8.78 billion||0.21||$1.93 billion||$10.01||8.98|
Anheuser-Busch Inbev SA has higher revenue and earnings than Molson Coors Brewing . Molson Coors Brewing is trading at a lower price-to-earnings ratio than Anheuser-Busch Inbev SA, indicating that it is currently the more affordable of the two stocks.
Anheuser-Busch Inbev SA beats Molson Coors Brewing on 11 of the 17 factors compared between the two stocks.
Anheuser-Busch Inbev SA Company Profile
Anheuser Busch Inbev NV (AB InBev) is a Belgium-based company engaged in the brewers industry. The Company owns a portfolio of over 200 beer brands. The Company’s brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck’s, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler. The Company’s soft drinks business consists of both own production and agreements with PepsiCo related to bottling and distribution arrangements between its various subsidiaries and PepsiCo. Ambev, which is a subsidiary of the Company, is a PepsiCo bottler. Brands that are distributed under these agreements are Pepsi, 7UP and Gatorade.
Molson Coors Brewing Company Profile
Molson Coors Brewing Company (MCBC) is a holding company. The Company operates as a brewer. The Company’s segments include MillerCoors LLC (United States segment), operating in the United States; Molson Coors Canada (Canada segment), operating in Canada; Molson Coors Europe (Europe segment), operating in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Republic of Ireland, Romania, Serbia, the United Kingdom and various other European countries; Molson Coors International (Molson Coors International segment), operating in various other countries, and Corporate. The Company brews, markets, sells and distributes a range of beer brands. The Company offers a portfolio of owned and partner brands, including Carling, Coors Light, Miller Lite, Molson Canadian and Staropramen, as well as craft and specialty beers, such as the Blue Moon Brewing Company brands, the Jacob Leinenkugel Brewing Company brands, Creemore Springs, Cobra and Doom Bar.
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