Compania Cervecerias Unidas, (NYSE:CCU) & Anheuser-Busch Inbev SA (BUD) Critical Contrast
Compania Cervecerias Unidas, (NYSE: CCU) and Anheuser-Busch Inbev SA (NYSE:BUD) are both mid-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Compania Cervecerias Unidas, pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Anheuser-Busch Inbev SA pays an annual dividend of $3.07 per share and has a dividend yield of 2.7%. Compania Cervecerias Unidas, pays out 32.7% of its earnings in the form of a dividend. 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. Anheuser-Busch Inbev SA has increased 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.
This is a breakdown of recent recommendations and price targets for Compania Cervecerias Unidas, and Anheuser-Busch Inbev SA, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Compania Cervecerias Unidas,||0||2||0||0||2.00|
|Anheuser-Busch Inbev SA||1||6||10||0||2.53|
Compania Cervecerias Unidas, currently has a consensus target price of $24.75, indicating a potential downside of 6.14%. Anheuser-Busch Inbev SA has a consensus target price of $129.75, indicating a potential upside of 12.03%. Given Anheuser-Busch Inbev SA’s stronger consensus rating and higher probable upside, analysts clearly believe Anheuser-Busch Inbev SA is more favorable than Compania Cervecerias Unidas,.
Volatility & Risk
Compania Cervecerias Unidas, has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Anheuser-Busch Inbev SA has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
This table compares Compania Cervecerias Unidas, and Anheuser-Busch Inbev SA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Compania Cervecerias Unidas,||7.58%||10.48%||6.88%|
|Anheuser-Busch Inbev SA||7.37%||13.61%||4.40%|
Valuation and Earnings
This table compares Compania Cervecerias Unidas, and Anheuser-Busch Inbev SA’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Compania Cervecerias Unidas,||$2.44 billion||2.00||$433.93 million||$0.98||26.91|
|Anheuser-Busch Inbev SA||$52.42 billion||4.27||$18.90 billion||$2.02||57.34|
Anheuser-Busch Inbev SA has higher revenue and earnings than Compania Cervecerias Unidas,. Compania Cervecerias Unidas, 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.
Institutional & Insider Ownership
13.2% of Compania Cervecerias Unidas, shares are owned by institutional investors. Comparatively, 5.3% of Anheuser-Busch Inbev SA shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas, shares are owned by insiders. Comparatively, 4.5% of Anheuser-Busch Inbev SA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Anheuser-Busch Inbev SA beats Compania Cervecerias Unidas, on 12 of the 17 factors compared between the two stocks.
Compania Cervecerias Unidas, Company Profile
Compania Cervecerias Unidas S.A. is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. The Company operates as a brewer, soft drinks producer, water and nectar producer, wine producer and pisco distributor. The Company’s segments include Chile, International Business and Wine. The Company carries a portfolio of products, which includes a range of brands of alcoholic and non-alcoholic beer, with Cristal as its primary brand in Chile. In addition, it produces and distributes Heineken beer; distributes Sol beer and Budweiser beer, and distributes and produces Kunstmann and Austral beer in Chile. The International Business segment includes operations in Argentina, Paraguay and Uruguay. The Company, through Vina San Pedro Tarapaca S.A. (VSPT), produces and markets a range of wine products for the domestic and mainly the export market.
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.
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