Contrasting Ambev (NYSE:ABEV) & Eastside Distilling (NASDAQ:BLNE)

Ambev (NYSE:ABEV) and Eastside Distilling (NASDAQ:BLNE) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Ambev has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Eastside Distilling has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares Ambev and Eastside Distilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambev	17.02%	16.12%	10.48%
Eastside Distilling	-74.63%	-2,066.36%	-31.99%

Analyst Ratings

This is a summary of recent ratings and target prices for Ambev and Eastside Distilling, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambev	1	4	0	0	1.80
Eastside Distilling	0	0	0	0	0.00

Ambev currently has a consensus target price of $2.60, indicating a potential upside of 7.22%. Given Ambev’s stronger consensus rating and higher possible upside, research analysts clearly believe Ambev is more favorable than Eastside Distilling.

Valuation & Earnings

This table compares Ambev and Eastside Distilling”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambev	$91.67 billion	0.42	$2.90 billion	$0.16	15.16
Eastside Distilling	$5.21 million	1.13	-$7.53 million	($37.00)	-0.02

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

Institutional & Insider Ownership

8.1% of Ambev shares are held by institutional investors. Comparatively, 0.6% of Eastside Distilling shares are held by institutional investors. 20.4% of Eastside Distilling shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Ambev beats Eastside Distilling on 10 of the 13 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 Eastside Distilling

Eastside Distilling, Inc. manufactures, acquires, blends, bottles, imports, exports, markets, and sells various alcoholic beverages. It operates through two segments, Spirits and Craft Canning and Bottling. The company provides whiskey under the Burnside Whiskey brand; vodka under the Portland Potato Vodka brand; rum under the Hue-Hue Coffee Rum brand; and tequila under the Azuñia Tequila brand. It also offers gin and ready-to-drink products; and canning and bottling services to the craft beer and cider industries. The company sells its products on a wholesale basis to distributors in the United States. Eastside Distilling, Inc. was founded in 2008 and is headquartered in Portland, Oregon.