Contrasting Waterloo Brewing (OTCMKTS:BIBLF) and Compania Cervecerias Unidas (NYSE:CCU)

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

Analyst Recommendations

This is a summary of current recommendations for Compania Cervecerias Unidas and Waterloo Brewing, as provided by MarketBeat.com.

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

Compania Cervecerias Unidas currently has a consensus price target of $12.00, indicating a potential downside of 0.91%. Given Compania Cervecerias Unidas’ stronger consensus rating and higher possible upside, equities analysts plainly believe Compania Cervecerias Unidas is more favorable than Waterloo Brewing.

Earnings and Valuation

This table compares Compania Cervecerias Unidas and Waterloo Brewing”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	0.73	$128.87 million	$0.62	19.53
Waterloo Brewing	N/A	N/A	N/A	N/A	N/A

Compania Cervecerias Unidas has higher revenue and earnings than Waterloo Brewing.

Profitability

This table compares Compania Cervecerias Unidas and Waterloo Brewing’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%
Waterloo Brewing	N/A	N/A	N/A

Insider and Institutional Ownership

24.1% of Compania Cervecerias Unidas shares are held by institutional investors. 8.4% of Compania Cervecerias Unidas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Compania Cervecerias Unidas beats Waterloo Brewing on 8 of the 8 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 Waterloo Brewing

Waterloo Brewing Ltd. engages in the production, sale, marketing and distribution of bottled, canned and draft premium beer under the Waterloo brand name and value beer under the Laker and Red Cap brand names. It also offers ready-to-drink alcoholic beverages under the Seagram trademark. The company was founded by James R. A. Brickman on February 20, 1984 and is headquartered in Kitchener, Canada.