Head to Head Review: Anheuser-Busch InBev SA/NV (BUD) versus Its Rivals

Anheuser-Busch InBev SA/NV (NYSE:BUD) is one of 137 public companies in the “Beverages” industry, but how does it contrast to its competitors? We will compare Anheuser-Busch InBev SA/NV to similar businesses based on the strength of its earnings, risk, analyst recommendations, institutional ownership, valuation, profitability and dividends.

Valuation and Earnings

This table compares Anheuser-Busch InBev SA/NV and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Anheuser-Busch InBev SA/NV	$63.99 billion	$6.84 billion	16.83
Anheuser-Busch InBev SA/NV Competitors	$126.04 billion	$869.16 million	6.12

Anheuser-Busch InBev SA/NV’s competitors have higher revenue, but lower earnings than Anheuser-Busch InBev SA/NV. Anheuser-Busch InBev SA/NV is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Anheuser-Busch InBev SA/NV has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV’s competitors have a beta of -0.22, indicating that their average share price is 122% less volatile than the S&P 500.

Institutional & Insider Ownership

5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are held by insiders. Comparatively, 19.4% of shares of all “Beverages” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Anheuser-Busch InBev SA/NV and its competitors’ 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%
Anheuser-Busch InBev SA/NV Competitors	-7.97%	-14.06%	0.46%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Anheuser-Busch InBev SA/NV and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75
Anheuser-Busch InBev SA/NV Competitors	1290	4341	5790	232	2.43

Anheuser-Busch InBev SA/NV presently has a consensus target price of $87.83, suggesting a potential upside of 4.37%. As a group, “Beverages” companies have a potential upside of 8.44%. Given Anheuser-Busch InBev SA/NV’s competitors higher probable upside, analysts clearly believe Anheuser-Busch InBev SA/NV has less favorable growth aspects than its competitors.

Dividends

Anheuser-Busch InBev SA/NV pays an annual dividend of $0.53 per share and has a dividend yield of 0.6%. Anheuser-Busch InBev SA/NV pays out 10.6% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 2.9% and pay out 48.1% of their earnings in the form of a dividend.

Summary

Anheuser-Busch InBev SA/NV beats its competitors on 9 of the 15 factors compared.

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.