Comparing Choose Rain (OTCMKTS:RSAU) and Ambev (NYSE:ABEV)

Ambev (NYSE:ABEV) and Choose Rain (OTCMKTS:RSAU) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Insider and Institutional Ownership

8.1% of Ambev shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Ambev and Choose Rain”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambev	$16.59 billion	2.45	$2.68 billion	$0.18	14.31
Choose Rain	N/A	N/A	-$670,000.00	($0.03)	-9.46

Ambev has higher revenue and earnings than Choose Rain. Choose Rain is trading at a lower price-to-earnings ratio than Ambev, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ambev has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Choose Rain has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares Ambev and Choose Rain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambev	17.90%	15.81%	10.16%
Choose Rain	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Ambev and Choose Rain, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambev	1	9	0	0	1.90
Choose Rain	0	0	0	0	0.00

Ambev presently has a consensus target price of $2.53, indicating a potential downside of 1.88%. Given Ambev’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ambev is more favorable than Choose Rain.

Summary

Ambev beats Choose Rain on 11 of the 11 factors compared between the two stocks.

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.

About Choose Rain

Choose Rain, Inc. collects, purifies, and filters rainwater into bottled drinking water. It serves its water to art shows, business meetings, college reunions, conventions, family reunions, festivals, golf tournaments, high school reunions, parades, parties/weddings, and sporting events. The company offers products through stores, small boutique locations, and its online store. The company was incorporated in 1998 and is based in Ormond Beach, Florida.