Head to Head Analysis: Boston Beer (NYSE:SAM) & Luckin Coffee (OTCMKTS:LKNCY)

Luckin Coffee (OTCMKTS:LKNCY) and Boston Beer (NYSE:SAM) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Luckin Coffee and Boston Beer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luckin Coffee	6.78%	24.91%	12.44%
Boston Beer	-3.42%	9.99%	6.48%

Analyst Recommendations

This is a summary of current recommendations and price targets for Luckin Coffee and Boston Beer, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luckin Coffee	0	1	1	2	3.25
Boston Beer	2	9	1	0	1.92

Luckin Coffee presently has a consensus price target of $46.87, indicating a potential upside of 39.19%. Boston Beer has a consensus price target of $205.09, indicating a potential upside of 15.24%. Given Luckin Coffee’s stronger consensus rating and higher probable upside, research analysts plainly believe Luckin Coffee is more favorable than Boston Beer.

Insider and Institutional Ownership

0.5% of Luckin Coffee shares are held by institutional investors. Comparatively, 81.1% of Boston Beer shares are held by institutional investors. 2.7% of Luckin Coffee shares are held by insiders. Comparatively, 27.4% of Boston Beer shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Luckin Coffee has a beta of -0.34, meaning that its share price is 134% less volatile than the S&P 500. Comparatively, Boston Beer has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares Luckin Coffee and Boston Beer”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luckin Coffee	$7.03 billion	1.37	$513.88 million	$1.68	20.04
Boston Beer	$2.09 billion	0.89	$108.47 million	($6.79)	-26.21

Luckin Coffee has higher revenue and earnings than Boston Beer. Boston Beer is trading at a lower price-to-earnings ratio than Luckin Coffee, indicating that it is currently the more affordable of the two stocks.

Summary

Luckin Coffee beats Boston Beer on 11 of the 14 factors compared between the two stocks.

About Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.

About Boston Beer

The Boston Beer Company, Inc produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, flavored malt beverages, and hard seltzers under the Samuel Adams, Twisted Tea, Truly, Angry Orchard, Dogfish Head, Angel City, and Coney Island brand names. The company markets and sells its products to a network wholesaler in the United States, as well as wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other e-commerce retail outlets. It sells its products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.