Financial Comparison: Heineken (HEINY) & Molson Coors Brewing (TAP)
Molson Coors Brewing (NYSE:TAP) and Heineken (OTCMKTS:HEINY) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
This table compares Molson Coors Brewing and Heineken’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Molson Coors Brewing||12.05%||7.58%||3.43%|
Molson Coors Brewing has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Heineken has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
This is a summary of current recommendations for Molson Coors Brewing and Heineken, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Molson Coors Brewing||1||5||7||0||2.46|
Molson Coors Brewing presently has a consensus target price of $74.08, suggesting a potential upside of 16.75%. Given Molson Coors Brewing’s stronger consensus rating and higher probable upside, research analysts clearly believe Molson Coors Brewing is more favorable than Heineken.
Molson Coors Brewing pays an annual dividend of $1.64 per share and has a dividend yield of 2.6%. Heineken pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. Molson Coors Brewing pays out 36.7% of its earnings in the form of a dividend. Heineken pays out 24.2% 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.
Earnings and Valuation
This table compares Molson Coors Brewing and Heineken’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Molson Coors Brewing||$13.47 billion||1.02||$1.41 billion||$4.47||14.19|
|Heineken||$24.73 billion||2.08||$2.19 billion||$2.23||20.06|
Heineken has higher revenue and earnings than Molson Coors Brewing. Molson Coors Brewing is trading at a lower price-to-earnings ratio than Heineken, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
76.1% of Molson Coors Brewing shares are owned by institutional investors. Comparatively, 0.2% of Heineken shares are owned by institutional investors. 2.6% of Molson Coors Brewing shares are owned by 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.
Molson Coors Brewing beats Heineken on 10 of the 16 factors compared between the two stocks.
About Molson Coors Brewing
Molson Coors Brewing Company manufactures and sells beer and other beverage products in the United States, Canada, Europe, and internationally. It sells various products under the Coors Light, Miller Lite, Coors Banquet, the Blue Moon Brewing Company brands, the Jacob Leinenkugel Brewing Company brands, Keystone, Icehouse, Mickey's, Miller 64, Miller Genuine Draft, Miller High Life, Milwaukee's Best, Hamm's, Olde English 800, Steel Reserve, Crispin, Smith & Forge, Redd's, the Henry's Hard Soda, and Steel Reserve Alloy Series brands. The company also offers various brands, including Molson Canadian, Belgian Moon, Carling, Carling Black Label, Creemore Springs, the Granville Island, Mad Jack, the Miller, Molson Canadian 67, Molson Canadian Cider, Molson Dry, Molson Export, Old Style Pilsner, and the Rickard's family of brands. In addition, it provides its products under the Staropramen, Apatinsko, Astika, Bergenbier, Borsodi, Branik, Jelen, Kamenitza, Niksicko, Noroc, Ostravar, Ozujsko, Sharp's Doom Bar, Worthington's, Cobra, and other brand names. Further, the company imports and sells Hop Valley, Revolver, Saint Archer, Terrapin, Grolsch, Peroni Nastro Azzurro, Pilsner Urquell, Desperados, Dos Equis, Moretti, Sol, Tecate, Carling Strong, Coors, Coors 1873, Coors Extra, Coors Gold, Iceberg 9000, King Cobra, Thunderbolt, and Zima brand products. Additionally, it brews or distributes various brands, such as Amstel Light, Heineken, Murphy's, Newcastle Brown Ale, Strongbow cider, Beck's, Belle-Vue Kriek brands, Hoegaarden, Leffe, Lowenbrau, Löwenweisse, Spaten and Stella Artois, Corona Extra, Rekorderlig, Singha, Blue Moon, Corona, Miller High Life, Molson Canadian, and other Modelo brands, as well as George Killian's Irish Red, the Redd's, and Foster's brands. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company in February 2005. The Company was founded in 1786 and is headquartered in Denver, Colorado.
Heineken N.V. engages in brewing and selling beer and cider. The company operates through Africa, Middle East & Eastern Europe; Americas; Asia Pacific; and Europe segments. It offers beer, cider, soft drinks, and other beverages. The company offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Tecate, Red Stripe, Kruovice, Birra Morett, Affligem, and Lagunitas brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Stassen, Bulmers, Old Mout, and Blind Pig brands. It offers its products to retailers, bars, and restaurants through distributors. The company was founded in 1864 and is headquartered in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.
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