Contrasting Boston Beer (NYSE:SAM) and Willamette Valley Vineyards (NASDAQ:WVVI)

Boston Beer (NYSE:SAM) and Willamette Valley Vineyards (NASDAQ:WVVI) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Profitability

This table compares Boston Beer and Willamette Valley Vineyards’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Beer	-3.59%	10.40%	6.38%
Willamette Valley Vineyards	-5.93%	-10.31%	-2.11%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Boston Beer and Willamette Valley Vineyards, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Beer	2	9	1	0	1.92
Willamette Valley Vineyards	1	0	0	0	1.00

Boston Beer currently has a consensus target price of $208.82, suggesting a potential downside of 4.96%. Given Boston Beer’s stronger consensus rating and higher possible upside, analysts clearly believe Boston Beer is more favorable than Willamette Valley Vineyards.

Insider & Institutional Ownership

81.1% of Boston Beer shares are owned by institutional investors. Comparatively, 12.2% of Willamette Valley Vineyards shares are owned by institutional investors. 27.4% of Boston Beer shares are owned by company insiders. Comparatively, 9.1% of Willamette Valley Vineyards shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Boston Beer and Willamette Valley Vineyards”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Beer	$2.09 billion	1.07	$108.47 million	($6.83)	-32.17
Willamette Valley Vineyards	$37.20 million	0.20	-$920,000.00	($0.92)	-1.64

Boston Beer has higher revenue and earnings than Willamette Valley Vineyards. Boston Beer is trading at a lower price-to-earnings ratio than Willamette Valley Vineyards, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Boston Beer has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Willamette Valley Vineyards has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Summary

Boston Beer beats Willamette Valley Vineyards on 12 of the 13 factors compared between the two stocks.

About Boston Beer

The Boston Beer Company, founded in 1984 by Jim Koch, began with Samuel Adams Boston Lager and has grown into a producer of beer, cider, hard seltzer and other alcoholic beverages. Its brands include Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard and Dogfish Head. The company develops and markets its products under its own brands and sells them primarily in the United States, with distribution in select international markets. Its portfolio spans traditional and craft beers, flavored malt beverages, hard cider and ready-to-drink products.

About Willamette Valley Vineyards

Willamette Valley Vineyards, Inc. is an Oregon-based wine producer founded in 1983 by Jim Bernau. The company focuses on producing premium wines from grapes grown in Oregon, with an emphasis on Pinot Noir, along with Chardonnay, Pinot Gris, Riesling and other varietals. The company owns and manages estate vineyards in Oregon’s Willamette Valley and sources grapes from additional vineyards in the state. Its products are sold under the Willamette Valley Vineyards brand and other labels, including wines associated with its estate and regional wine operations.