Head to Head Contrast: Anheuser-Busch InBev SA/NV (NYSE:BUD) vs. Fomento Economico Mexicano (NYSE:FMX)

Fomento Economico Mexicano (NYSE:FMX) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Dividends

Fomento Economico Mexicano pays an annual dividend of $2.38 per share and has a dividend yield of 1.9%. Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.7%. Fomento Economico Mexicano pays out 47.6% of its earnings in the form of a dividend. Anheuser-Busch InBev SA/NV pays out 29.9% 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 & Valuation

This table compares Fomento Economico Mexicano and Anheuser-Busch InBev SA/NV”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fomento Economico Mexicano	$43.86 billion	1.00	$1.08 billion	$5.00	25.31
Anheuser-Busch InBev SA/NV	$59.32 billion	2.81	$6.84 billion	$4.72	17.52

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Fomento Economico Mexicano. Anheuser-Busch InBev SA/NV is trading at a lower price-to-earnings ratio than Fomento Economico Mexicano, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fomento Economico Mexicano and Anheuser-Busch InBev SA/NV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fomento Economico Mexicano	3.60%	7.24%	2.82%
Anheuser-Busch InBev SA/NV	14.90%	16.42%	7.47%

Risk & Volatility

Fomento Economico Mexicano has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Fomento Economico Mexicano and Anheuser-Busch InBev SA/NV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fomento Economico Mexicano	0	4	4	0	2.50
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75

Fomento Economico Mexicano presently has a consensus target price of $139.83, indicating a potential upside of 10.49%. Anheuser-Busch InBev SA/NV has a consensus target price of $87.83, indicating a potential upside of 6.24%. Given Fomento Economico Mexicano’s higher probable upside, analysts plainly believe Fomento Economico Mexicano is more favorable than Anheuser-Busch InBev SA/NV.

Institutional & Insider Ownership

61.0% of Fomento Economico Mexicano shares are held by institutional investors. Comparatively, 5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. 5.7% of Fomento Economico Mexicano shares are held by company insiders. Comparatively, 4.5% of Anheuser-Busch InBev SA/NV shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Anheuser-Busch InBev SA/NV beats Fomento Economico Mexicano on 10 of the 16 factors compared between the two stocks.

About Fomento Economico Mexicano

Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay. It also operates small-box retail chain stores in Mexico, Colombia, Peru, Chile, and Brazil under the OXXO name; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile, Colombia, Ecuador, and Mexico under the Cruz Verde, Fybeca, SanaSana, YZA, La Moderna, and Farmacon names. In addition, the company is involved in the production and distribution of collers, commercial refrigeration equipment, plastic boxes, food processing, and preservation and weighing equipment; and provision of logistic transportation, distribution and maintenance, point-of-sale refrigeration, and plastics solutions, as well as distribution platform for cleaning products and consumables. Further, it operates small-box retail and food convenience chain stores in Switzerland, Germany, Austria, Luxembourg, and the Netherlands under the k kiosk, Brezelkönig, BackWerk, Ditsch, Press & Books, avec, Caffè Spettacolo, and ok.) names, as well as pretzels under the Ditsch name. The company was founded in 1890 and is based in Monterrey, Mexico.

About Anheuser-Busch InBev SA/NV

Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands. The company operates in North America, Middle America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1366 and is headquartered in Leuven, Belgium.