Comparing Pernod Ricard (OTCMKTS:PRNDY) & Anheuser-Busch InBev SA/NV (NYSE:BUD)

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

Analyst Ratings

This is a breakdown of current recommendations for Pernod Ricard and Anheuser-Busch InBev SA/NV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pernod Ricard	2	0	0	1	2.00
Anheuser-Busch InBev SA/NV	0	6	11	0	2.65

Anheuser-Busch InBev SA/NV has a consensus target price of $91.08, indicating a potential upside of 13.73%. Given Anheuser-Busch InBev SA/NV’s stronger consensus rating and higher probable upside, analysts plainly believe Anheuser-Busch InBev SA/NV is more favorable than Pernod Ricard.

Volatility & Risk

Pernod Ricard has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Dividends

Pernod Ricard pays an annual dividend of $0.75 per share and has a dividend yield of 5.1%. Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.8%. Anheuser-Busch InBev SA/NV pays out 29.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pernod Ricard	N/A	N/A	N/A
Anheuser-Busch InBev SA/NV	14.90%	16.42%	7.47%

Earnings and Valuation

This table compares Pernod Ricard 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
Pernod Ricard	$10.97 billion	1.69	$1.77 billion	N/A	N/A
Anheuser-Busch InBev SA/NV	$59.32 billion	2.73	$6.84 billion	$4.72	16.97

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Pernod Ricard.

Summary

Anheuser-Busch InBev SA/NV beats Pernod Ricard on 12 of the 15 factors compared between the two stocks.

About Pernod Ricard

Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands 100 Pipers, Aberlour, Absolut, Absolut Elyx, Altos, ARARAT, Augier, Avion, Ballantine's, Becherovka, Beefeater, Blenders Pride, Brancott Estate, Campo Viejo, Ceder's, Chivas, Church Road, Clan Campbell, Del Maguey, George Wyndham, Green Spot, Havana Club, Imperial, Imperial Blue, Italicus, J.P. Wiser's, Jacob's Creek, Jameson, Jefferson's, Kahlúa, Kenwood, KI NO BI, Lillet, Long John, L'Orbe, Lot No. 40, Malfy, Malibu, Martell, Method & Madness, Midleton Very Rare, Minttu, Monkey 47, Mumm, Olmeca, Ostoya, Passport Scotch, Pastis 51, Pernod, Perrier-Jouët, Plymouth Gin, Powers, Rabbit Hole, Ramazzotti, Redbreast, Ricard, Royal Salute, Royal Stag, Scapa, Seagram's Gin, Secret Speyside, Smooth Ambler, Something Special, St Hugo, Stoneleigh, Suze, The Glenlivet, TX, Wyborowa, and Ysios. It also provides non-alcoholic beverages under the brands Ceder's, Suze Tonic 0%, Cinzano Spritz 0%, Pacific, Campo Viejo Sparkling 0%, and Jacob's Creek Unvined. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.

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.