Financial Analysis: Anheuser Busch Inbev (BUD) & Craft Brew Alliance (NASDAQ:BREW)
Anheuser Busch Inbev (NYSE: BUD) and Craft Brew Alliance (NASDAQ:BREW) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Volatility & Risk
Anheuser Busch Inbev has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Craft Brew Alliance has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
This table compares Anheuser Busch Inbev and Craft Brew Alliance’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Anheuser Busch Inbev||$56.44 billion||2.92||$8.00 billion||$4.04||24.10|
|Craft Brew Alliance||$207.46 million||1.85||$9.52 million||$0.14||142.14|
Anheuser Busch Inbev has higher revenue and earnings than Craft Brew Alliance. Anheuser Busch Inbev is trading at a lower price-to-earnings ratio than Craft Brew Alliance, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
6.0% of Anheuser Busch Inbev shares are held by institutional investors. Comparatively, 35.7% of Craft Brew Alliance shares are held by institutional investors. 4.5% of Anheuser Busch Inbev shares are held by insiders. Comparatively, 3.9% of Craft Brew Alliance 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.
Anheuser Busch Inbev pays an annual dividend of $3.71 per share and has a dividend yield of 3.8%. Craft Brew Alliance does not pay a dividend. Anheuser Busch Inbev pays out 91.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anheuser Busch Inbev has raised its dividend for 8 consecutive years.
This is a summary of current recommendations and price targets for Anheuser Busch Inbev and Craft Brew Alliance, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Anheuser Busch Inbev||2||2||10||0||2.57|
|Craft Brew Alliance||0||3||2||0||2.40|
Anheuser Busch Inbev currently has a consensus target price of $123.04, suggesting a potential upside of 26.36%. Craft Brew Alliance has a consensus target price of $20.20, suggesting a potential upside of 1.51%. Given Anheuser Busch Inbev’s stronger consensus rating and higher probable upside, equities analysts clearly believe Anheuser Busch Inbev is more favorable than Craft Brew Alliance.
This table compares Anheuser Busch Inbev and Craft Brew Alliance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Anheuser Busch Inbev||13.45%||19.43%||6.39%|
|Craft Brew Alliance||5.38%||3.62%||2.23%|
Anheuser Busch Inbev beats Craft Brew Alliance on 14 of the 17 factors compared between the two stocks.
About Anheuser Busch Inbev
Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, including Budweiser, Corona, and Stella Artois; Beck's, Castle, Castle Lite, Hoegaarden, and Leffe; and Aguila, Antarctica, Bud Light, Brahma, Cass, Chernigivske, Cristal, Harbin, Jupiler, Klinskoye, Michelob Ultra, Modelo Especial, Quilmes, Victoria, Sedrin, Sibirskaya Korona, and Skol. The company was founded in 1366 and is headquartered in Leuven, Belgium.
About Craft Brew Alliance
Craft Brew Alliance, Inc. brews and sells craft beers and ciders in the United States and internationally. It operates through two segments, Beer Related Operations and Brewpubs Operations. It offers beers under the Kona, Widmer Brothers, Redhook, and Omission brands; and ciders under the Square Mile brand name. The company sells its beers directly to consumers in draft, cans, and bottles at restaurants, bars, and liquor stores; and in cans and bottles at supermarkets, warehouse clubs, convenience stores, and drug stores, as well as directly to consumers at its brewpubs and breweries. It also operates five brewpubs, as well as sells apparel and other merchandise at these pubs. The company was founded in 1981 and is headquartered in Portland, Oregon.
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