Head-To-Head Survey: Compania Cervecerias Unidas (NYSE:CCU) vs. Anheuser-Busch InBev SA/NV (NYSE:BUD)

Compania Cervecerias Unidas (NYSE:CCU) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional & Insider Ownership

24.1% of Compania Cervecerias Unidas shares are owned by institutional investors. Comparatively, 5.5% of Anheuser-Busch InBev SA/NV shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by company insiders. Comparatively, 4.5% of Anheuser-Busch InBev SA/NV shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Compania Cervecerias Unidas pays an annual dividend of $0.19 per share and has a dividend yield of 1.8%. Anheuser-Busch InBev SA/NV pays an annual dividend of $0.89 per share and has a dividend yield of 1.1%. Compania Cervecerias Unidas pays out 30.6% of its earnings in the form of a dividend. Anheuser-Busch InBev SA/NV pays out 17.8% 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 Compania Cervecerias Unidas and Anheuser-Busch InBev SA/NV”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compania Cervecerias Unidas	$3.06 billion	0.65	$128.87 million	$0.62	17.49
Anheuser-Busch InBev SA/NV	$63.99 billion	2.65	$6.84 billion	$5.00	16.77

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Compania Cervecerias Unidas and Anheuser-Busch InBev SA/NV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compania Cervecerias Unidas	3	1	0	0	1.25
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75

Compania Cervecerias Unidas presently has a consensus price target of $11.50, suggesting a potential upside of 6.05%. Anheuser-Busch InBev SA/NV has a consensus price target of $87.83, suggesting a potential upside of 4.72%. Given Compania Cervecerias Unidas’ higher probable upside, equities research analysts plainly believe Compania Cervecerias Unidas is more favorable than Anheuser-Busch InBev SA/NV.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Compania Cervecerias Unidas	3.60%	6.68%	3.01%
Anheuser-Busch InBev SA/NV	15.42%	17.28%	7.86%

Volatility & Risk

Compania Cervecerias Unidas has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Summary

Anheuser-Busch InBev SA/NV beats Compania Cervecerias Unidas on 11 of the 16 factors compared between the two stocks.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

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.