Analyzing Ambev (NYSE:ABEV) & Anheuser-Busch InBev SA/NV (NYSE:BUD)

Anheuser-Busch InBev SA/NV (NYSE:BUD) and Ambev (NYSE:ABEV) are both large-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Dividends

Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.6%. Ambev pays an annual dividend of $0.03 per share and has a dividend yield of 1.1%. Anheuser-Busch InBev SA/NV pays out 28.2% of its earnings in the form of a dividend. Ambev pays out 15.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Anheuser-Busch InBev SA/NV and Ambev’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anheuser-Busch InBev SA/NV	15.42%	17.28%	7.86%
Ambev	17.80%	18.13%	11.50%

Valuation and Earnings

This table compares Anheuser-Busch InBev SA/NV and Ambev”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anheuser-Busch InBev SA/NV	$59.32 billion	2.93	$6.84 billion	$5.00	17.24
Ambev	$15.80 billion	2.77	$2.78 billion	$0.19	14.61

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Ambev. Ambev is trading at a lower price-to-earnings ratio than Anheuser-Busch InBev SA/NV, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Anheuser-Busch InBev SA/NV and Ambev, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75
Ambev	2	4	0	0	1.67

Anheuser-Busch InBev SA/NV presently has a consensus price target of $87.83, indicating a potential upside of 1.92%. Ambev has a consensus price target of $3.01, indicating a potential upside of 8.38%. Given Ambev’s higher possible upside, analysts plainly believe Ambev is more favorable than Anheuser-Busch InBev SA/NV.

Institutional and Insider Ownership

5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. Comparatively, 8.1% of Ambev shares are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are held by company 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.

Risk & Volatility

Anheuser-Busch InBev SA/NV has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Ambev has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Summary

Anheuser-Busch InBev SA/NV beats Ambev on 9 of the 16 factors compared between the two stocks.

About Anheuser-Busch InBev SA/NV

Anheuser-Busch InBev SA/NV is a global brewing company headquartered in Leuven, Belgium. It brews, markets and distributes beer and other beverages through a portfolio of international and local brands, including Budweiser, Bud Light, Stella Artois, Corona, Michelob Ultra and Beck’s. The company sells its products across markets worldwide, with operations spanning multiple regions, including North America, Latin America, Europe, Africa and Asia. Its business also includes non-alcoholic beer and other beverage offerings, alongside brewing and distribution services.

About Ambev

Ambev S.A. is a beverage company headquartered in São Paulo, Brazil. It produces, distributes and sells beer and other beverages, including soft drinks, water and energy drinks. Its beer portfolio includes brands such as Brahma, Antarctica and Skol, as well as international brands marketed under license or through distribution agreements. The company serves customers across Brazil and other markets in Latin America, including countries in South America, Central America and the Caribbean. Its operations span beverage production, packaging and distribution, supported by a network that delivers products to retailers, bars and restaurants.