Financial Comparison: Boston Beer (NYSE:SAM) vs. Heritage Distilling (NASDAQ:IPST)

Heritage Distilling (NASDAQ:IPST) and Boston Beer (NYSE:SAM) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Risk and Volatility

Heritage Distilling has a beta of 6.04, suggesting that its stock price is 504% more volatile than the S&P 500. Comparatively, Boston Beer has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Valuation & Earnings

This table compares Heritage Distilling and Boston Beer”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Distilling	$8.40 million	1.81	$710,000.00	($22.15)	-0.07
Boston Beer	$2.14 billion	1.07	$59.69 million	$8.48	25.41

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

Profitability

This table compares Heritage Distilling and Boston Beer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Distilling	2,132.99%	-13.65%	-10.11%
Boston Beer	4.38%	12.29%	8.93%

Institutional & Insider Ownership

81.1% of Boston Beer shares are owned by institutional investors. 13.2% of Heritage Distilling shares are owned by company insiders. Comparatively, 26.1% of Boston Beer shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Heritage Distilling and Boston Beer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Distilling	1	0	0	0	1.00
Boston Beer	2	10	1	0	1.92

Boston Beer has a consensus target price of $247.28, indicating a potential upside of 14.77%. Given Boston Beer’s stronger consensus rating and higher probable upside, analysts clearly believe Boston Beer is more favorable than Heritage Distilling.

Summary

Boston Beer beats Heritage Distilling on 11 of the 14 factors compared between the two stocks.

About Heritage Distilling

Heritage Distilling Holding Company Inc. is a craft distiller of premium brands, including whiskeys, vodkas, gins, rums and ready-to-drink canned cocktails. Heritage Distilling Holding Company Inc. is based in GIG HARBOR, Wash.

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.