Head to Head Analysis: Innovation Beverage Group (NASDAQ:IBG) and Ambev (NYSE:ABEV)

Innovation Beverage Group (NASDAQ:IBG) and Ambev (NYSE:ABEV) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

8.1% of Ambev shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Innovation Beverage Group and Ambev’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovation Beverage Group	N/A	N/A	N/A
Ambev	17.02%	16.12%	10.48%

Earnings & Valuation

This table compares Innovation Beverage Group and Ambev”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovation Beverage Group	$2.93 million	1.70	N/A	N/A	N/A
Ambev	$91.67 billion	0.43	$2.90 billion	$0.16	15.47

Ambev has higher revenue and earnings than Innovation Beverage Group.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Innovation Beverage Group and Ambev, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovation Beverage Group	0	0	1	0	3.00
Ambev	1	4	0	0	1.80

Ambev has a consensus price target of $2.70, suggesting a potential upside of 9.09%. Given Ambev’s higher probable upside, analysts clearly believe Ambev is more favorable than Innovation Beverage Group.

Summary

Ambev beats Innovation Beverage Group on 6 of the 9 factors compared between the two stocks.

About Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.

About Ambev

Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s, and Kokanee brands. The company also provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Pepsi Black, Lipton Iced Tea, Fusion, Pepsi-Cola, Canada Dry, Squirt, Red Rock, Red Bull, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike’s brands. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.