Ambev (ABEV) versus Its Competitors Head to Head Comparison

Ambev (NYSE:ABEV) is one of 137 publicly-traded companies in the “Beverages” industry, but how does it weigh in compared to its competitors? We will compare Ambev to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, risk, earnings, profitability and dividends.

Profitability

This table compares Ambev and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambev	17.80%	18.13%	11.50%
Ambev Competitors	-8.04%	-16.31%	0.13%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ambev and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambev	2	4	0	0	1.67
Ambev Competitors	1284	4337	5785	231	2.43

Ambev presently has a consensus price target of $3.01, suggesting a potential upside of 7.99%. As a group, “Beverages” companies have a potential upside of 9.95%. Given Ambev’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Ambev has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

8.1% of Ambev shares are owned by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are owned by institutional investors. 19.4% of shares of all “Beverages” companies are owned 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.

Risk and Volatility

Ambev has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Ambev’s competitors have a beta of -0.22, meaning that their average share price is 122% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ambev and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ambev	$15.80 billion	$2.78 billion	14.66
Ambev Competitors	$126.04 billion	$869.16 million	5.69

Ambev’s competitors have higher revenue, but lower earnings than Ambev. Ambev is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Ambev pays an annual dividend of $0.03 per share and has a dividend yield of 1.1%. Ambev pays out 15.8% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 3.0% and pay out 48.8% of their earnings in the form of a dividend.

Summary

Ambev competitors beat Ambev on 8 of the 15 factors compared.

About Ambev

Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s, and Kokanee brands. The company also provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Pepsi Black, Lipton Iced Tea, Fusion, Pepsi-Cola, Canada Dry, Squirt, Red Rock, Red Bull, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike’s brands. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.