Boston Beer (NYSE:SAM – Get Free Report) and Innovation Beverage Group (NASDAQ:IBG – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Earnings & Valuation
This table compares Boston Beer and Innovation Beverage Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boston Beer | $1.91 billion | 1.08 | -$71.12 million | ($6.83) | -28.94 |
| Innovation Beverage Group | $2.77 million | 0.38 | -$448,980.00 | ($0.42) | -2.36 |
Innovation Beverage Group has lower revenue, but higher earnings than Boston Beer. Boston Beer is trading at a lower price-to-earnings ratio than Innovation Beverage Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for Boston Beer and Innovation Beverage Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boston Beer | 2 | 9 | 1 | 0 | 1.92 |
| Innovation Beverage Group | 1 | 0 | 0 | 0 | 1.00 |
Boston Beer presently has a consensus price target of $208.82, indicating a potential upside of 5.65%. Given Boston Beer’s stronger consensus rating and higher possible upside, analysts clearly believe Boston Beer is more favorable than Innovation Beverage Group.
Risk & Volatility
Boston Beer has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Innovation Beverage Group has a beta of 3.15, meaning that its stock price is 215% more volatile than the S&P 500.
Profitability
This table compares Boston Beer and Innovation Beverage Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boston Beer | N/A | N/A | N/A |
| Innovation Beverage Group | N/A | N/A | N/A |
Insider & Institutional Ownership
81.1% of Boston Beer shares are held by institutional investors. 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.
Summary
Boston Beer beats Innovation Beverage Group on 7 of the 11 factors compared between the two stocks.
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.
About Innovation Beverage Group
Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.
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