Analyzing Compania Cervecerias Unidas (NYSE:CCU) & Choose Rain (OTCMKTS:RSAU)

Compania Cervecerias Unidas (NYSE:CCU) and Choose Rain (OTCMKTS:RSAU) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Compania Cervecerias Unidas and Choose Rain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compania Cervecerias Unidas	3	1	0	0	1.25
Choose Rain	0	0	0	0	0.00

Compania Cervecerias Unidas presently has a consensus target price of $12.00, indicating a potential upside of 8.60%. Given Compania Cervecerias Unidas’ stronger consensus rating and higher possible upside, equities analysts plainly believe Compania Cervecerias Unidas is more favorable than Choose Rain.

Insider and Institutional Ownership

24.1% of Compania Cervecerias Unidas shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Compania Cervecerias Unidas and Choose Rain”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compania Cervecerias Unidas	$3.06 billion	0.67	$128.87 million	$0.68	16.25
Choose Rain	N/A	N/A	-$470,000.00	($0.01)	-22.90

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

Risk & Volatility

Compania Cervecerias Unidas has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Choose Rain has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Compania Cervecerias Unidas	4.14%	7.34%	3.33%
Choose Rain	N/A	N/A	N/A

Summary

Compania Cervecerias Unidas beats Choose Rain on 12 of the 12 factors compared between the two stocks.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

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.