Keurig Dr Pepper (NASDAQ:KDP) versus Anheuser-Busch InBev SA/NV (NYSE:BUD) Head-To-Head Contrast

Keurig Dr Pepper (NASDAQ:KDP) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Volatility & Risk

Keurig Dr Pepper has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, 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.

Valuation and Earnings

This table compares Keurig Dr Pepper and Anheuser-Busch InBev SA/NV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keurig Dr Pepper	$23.13 billion	2.25	$2.08 billion	$1.09	35.09
Anheuser-Busch InBev SA/NV	$63.99 billion	2.66	$6.84 billion	$5.00	16.83

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Keurig Dr Pepper. Anheuser-Busch InBev SA/NV is trading at a lower price-to-earnings ratio than Keurig Dr Pepper, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

94.0% of Keurig Dr Pepper shares are held by institutional investors. Comparatively, 5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. 0.3% of Keurig Dr Pepper shares are held by insiders. Comparatively, 4.5% of Anheuser-Busch InBev SA/NV shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Keurig Dr Pepper and Anheuser-Busch InBev SA/NV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keurig Dr Pepper	0	9	10	0	2.53
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75

Keurig Dr Pepper currently has a consensus target price of $37.29, indicating a potential downside of 2.50%. Anheuser-Busch InBev SA/NV has a consensus target price of $87.83, indicating a potential upside of 4.37%. Given Anheuser-Busch InBev SA/NV’s stronger consensus rating and higher probable upside, analysts plainly believe Anheuser-Busch InBev SA/NV is more favorable than Keurig Dr Pepper.

Dividends

Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Anheuser-Busch InBev SA/NV pays an annual dividend of $0.53 per share and has a dividend yield of 0.6%. Keurig Dr Pepper pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anheuser-Busch InBev SA/NV pays out 10.6% of its earnings in the form of a dividend. Keurig Dr Pepper has increased its dividend for 4 consecutive years. Keurig Dr Pepper is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Keurig Dr Pepper and Anheuser-Busch InBev SA/NV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keurig Dr Pepper	7.12%	11.27%	4.22%
Anheuser-Busch InBev SA/NV	15.42%	17.28%	7.86%

Summary

Anheuser-Busch InBev SA/NV beats Keurig Dr Pepper on 13 of the 17 factors compared between the two stocks.

About Keurig Dr Pepper

Keurig Dr Pepper Inc. (NASDAQ: KDP) is a beverage company that operates across coffee and packaged beverages. Its portfolio includes soft drinks, flavored waters, juices, juice drinks, ready-to-drink teas and coffees, sports and energy beverages, and mixers, as well as single-serve coffee brewing systems and pods. The company’s brands include Keurig, Green Mountain Coffee Roasters, The Original Donut Shop, Dr Pepper, Canada Dry, Snapple, 7UP, A&W, Mott’s, Bai, CORE Hydration and Venom, among others.

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.