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

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

Profitability

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

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

Valuation & Earnings

This table compares Anheuser-Busch InBev SA/NV and Compania Cervecerias Unidas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anheuser-Busch InBev SA/NV	$63.99 billion	2.66	$6.84 billion	$5.00	16.83
Compania Cervecerias Unidas	$3.06 billion	0.64	$128.87 million	$0.62	17.16

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.

Dividends

Anheuser-Busch InBev SA/NV pays an annual dividend of $0.53 per share and has a dividend yield of 0.6%. 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 out 10.6% of its earnings in the form of a dividend. Compania Cervecerias Unidas pays out 30.6% 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.

Analyst Recommendations

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

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

Anheuser-Busch InBev SA/NV currently has a consensus target price of $87.83, suggesting a potential upside of 4.37%. Compania Cervecerias Unidas has a consensus target price of $11.50, suggesting a potential upside of 8.06%. Given Compania Cervecerias Unidas’ higher possible upside, analysts plainly believe Compania Cervecerias Unidas is more favorable than Anheuser-Busch InBev SA/NV.

Risk and Volatility

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

Insider and Institutional Ownership

5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. Comparatively, 24.1% of Compania Cervecerias Unidas shares are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are held by company insiders. Comparatively, 8.4% of Compania Cervecerias Unidas shares are held by company 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.

Summary

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

About Anheuser-Busch InBev SA/NV

Anheuser-Busch InBev SA/NV is a global brewing company headquartered in Leuven, Belgium. It brews, markets and distributes beer and other beverages through a portfolio of international and local brands, including Budweiser, Bud Light, Stella Artois, Corona, Michelob Ultra and Beck’s. The company sells its products across markets worldwide, with operations spanning multiple regions, including North America, Latin America, Europe, Africa and Asia. Its business also includes non-alcoholic beer and other beverage offerings, alongside brewing and distribution services.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas S.A. (CCU) is a Chilean beverage company founded in 1902. It produces, markets and distributes a range of alcoholic and non-alcoholic beverages, including beer, soft drinks, bottled water, juices, energy drinks, wine and spirits. CCU sells products under its own brands and through partnerships with international beverage companies. Its beer portfolio includes brands such as Cristal and Escudo, alongside beers produced or distributed under license. The company operates across several South American markets, including Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay.