Contrasting Boston Beer (NYSE:SAM) and Innovation Beverage Group (NASDAQ:IBG)

Innovation Beverage Group (NASDAQ:IBG) and Boston Beer (NYSE:SAM) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Earnings and Valuation

This table compares Innovation Beverage Group and Boston Beer”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovation Beverage Group	$2.77 million	0.33	-$6.19 million	($0.42)	-2.02
Boston Beer	$2.09 billion	0.98	$108.47 million	($6.83)	-29.37

Boston Beer has higher revenue and earnings than Innovation Beverage Group. Boston Beer is trading at a lower price-to-earnings ratio than Innovation Beverage Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Innovation Beverage Group and Boston Beer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovation Beverage Group	N/A	N/A	N/A
Boston Beer	-3.59%	10.40%	6.38%

Volatility and Risk

Innovation Beverage Group has a beta of 3.1, suggesting that its stock price is 210% more volatile than the S&P 500. Comparatively, Boston Beer has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

81.1% of Boston Beer shares are held by institutional investors. 27.4% of Boston Beer shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Innovation Beverage Group and Boston Beer, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovation Beverage Group	1	0	0	0	1.00
Boston Beer	2	9	1	0	1.92

Boston Beer has a consensus target price of $208.82, indicating a potential upside of 4.09%. Given Boston Beer’s stronger consensus rating and higher probable upside, analysts clearly believe Boston Beer is more favorable than Innovation Beverage Group.

Summary

Boston Beer beats Innovation Beverage Group on 10 of the 14 factors compared between the two stocks.

About Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.

About Boston Beer

The Boston Beer Company, Inc produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, flavored malt beverages, and hard seltzers under the Samuel Adams, Twisted Tea, Truly, Angry Orchard, Dogfish Head, Angel City, and Coney Island brand names. The company markets and sells its products to a network wholesaler in the United States, as well as wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other e-commerce retail outlets. It sells its products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.