Financial Review: Choose Rain (OTCMKTS:RSAU) & Compania Cervecerias Unidas (NYSE:CCU)

Choose Rain (OTCMKTS:RSAU) and Compania Cervecerias Unidas (NYSE:CCU) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Choose Rain	N/A	N/A	N/A
Compania Cervecerias Unidas	4.14%	7.34%	3.33%

Risk and Volatility

Choose Rain has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Compania Cervecerias Unidas has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Valuation and Earnings

This table compares Choose Rain and Compania Cervecerias Unidas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Choose Rain	N/A	N/A	-$470,000.00	($0.01)	-22.90
Compania Cervecerias Unidas	$2,911.47 billion	0.00	$128.87 million	$0.68	16.25

Compania Cervecerias Unidas has higher revenue and earnings than Choose Rain. Choose Rain 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.

Analyst Recommendations

This is a summary of current ratings for Choose Rain and Compania Cervecerias Unidas, as reported by MarketBeat.com.

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

Compania Cervecerias Unidas has a consensus target price of $12.00, suggesting a potential upside of 8.60%. Given Compania Cervecerias Unidas’ stronger consensus rating and higher probable upside, analysts clearly believe Compania Cervecerias Unidas is more favorable than Choose Rain.

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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Compania Cervecerias Unidas beats Choose Rain on 12 of the 12 factors compared between the two stocks.

About Choose Rain

Choose Rain, Inc. collects, purifies, and filters rainwater into bottled drinking water. It serves its water to art shows, business meetings, college reunions, conventions, family reunions, festivals, golf tournaments, high school reunions, parades, parties/weddings, and sporting events. The company offers products through stores, small boutique locations, and its online store. The company was incorporated in 1998 and is based in Ormond Beach, Florida.

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.