Analyzing Britvic (OTCMKTS:BTVCY) & Compania Cervecerias Unidas (NYSE:CCU)

Compania Cervecerias Unidas (NYSE:CCU) and Britvic (OTCMKTS:BTVCY) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Insider & Institutional Ownership

24.1% of Compania Cervecerias Unidas shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock 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 1.6%. Britvic pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. Compania Cervecerias Unidas pays out 30.6% of its earnings in the form of a dividend.

Profitability

This table compares Compania Cervecerias Unidas and Britvic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compania Cervecerias Unidas	3.71%	6.77%	3.06%
Britvic	N/A	N/A	N/A

Volatility and Risk

Compania Cervecerias Unidas has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Britvic has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Compania Cervecerias Unidas and Britvic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compania Cervecerias Unidas	3	1	0	0	1.25
Britvic	0	0	0	0	0.00

Compania Cervecerias Unidas presently has a consensus target price of $12.00, suggesting a potential upside of 2.87%. Given Compania Cervecerias Unidas’ stronger consensus rating and higher probable upside, equities analysts clearly believe Compania Cervecerias Unidas is more favorable than Britvic.

Valuation and Earnings

This table compares Compania Cervecerias Unidas and Britvic”s gross 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	0.70	$128.87 million	$0.62	18.81
Britvic	$2.41 billion	1.53	$159.57 million	N/A	N/A

Britvic has lower revenue, but higher earnings than Compania Cervecerias Unidas.

Summary

Compania Cervecerias Unidas beats Britvic on 9 of the 13 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 Britvic

Britvic plc, together with its subsidiaries, manufactures, markets, distributes, and sells soft drinks in the United Kingdom, the Republic of Ireland, France, Brazil, and internationally. It provides fruit juices, syrups, squash, mineral water, sodas, mixers, and energy and flavored drinks. The company supplies water-coolers and bottled water; offers pension funding and financing services; and designs, installs, as well as engages in maintenance of integrated tap related solutions. It offers its products under the 7UP, Aqua Libra, Ballygowan, Britvic, Fruit Shot, Gatorade, J2O, Jimmy’s Iced Coffee, Lipton, The London Essence, Mathieu Teisseire, Mountain Dew, Pepsi MAX, Plenish, Purdey’s, Robinson’s, Rockstar, R. White’s, Tango, and Teisseire brands. Britvic plc was founded in 1930 and is based in Hemel Hempstead, the United Kingdom.