Head to Head Survey: Ambev (NYSE:ABEV) & Pernod Ricard (OTCMKTS:PDRDF)

Pernod Ricard (OTCMKTS:PDRDF) and Ambev (NYSE:ABEV) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Pernod Ricard and Ambev’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pernod Ricard	N/A	N/A	N/A
Ambev	18.47%	17.48%	11.14%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Pernod Ricard and Ambev, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pernod Ricard	2	0	0	0	1.00
Ambev	1	5	0	0	1.83

Ambev has a consensus price target of $3.08, indicating a potential upside of 6.46%. Given Ambev’s stronger consensus rating and higher probable upside, analysts clearly believe Ambev is more favorable than Pernod Ricard.

Valuation and Earnings

This table compares Pernod Ricard and Ambev”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pernod Ricard	N/A	N/A	N/A	C$3.82	20.20
Ambev	$88.27 billion	0.52	$2.78 billion	$0.20	14.45

Ambev has higher revenue and earnings than Pernod Ricard. Ambev is trading at a lower price-to-earnings ratio than Pernod Ricard, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

39.1% of Pernod Ricard shares are owned by institutional investors. Comparatively, 8.1% of Ambev shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Pernod Ricard pays an annual dividend of C$1.67 per share and has a dividend yield of 2.2%. Ambev pays an annual dividend of $0.03 per share and has a dividend yield of 1.0%. Pernod Ricard pays out 43.7% of its earnings in the form of a dividend. Ambev pays out 15.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Ambev beats Pernod Ricard on 7 of the 11 factors compared between the two stocks.

About Pernod Ricard

Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands 100 Pipers, Aberlour, Absolut, Absolut Elyx, Altos, ARARAT, Augier, Avion, Ballantine's, Becherovka, Beefeater, Blenders Pride, Brancott Estate, Campo Viejo, Ceder's, Chivas, Church Road, Clan Campbell, Del Maguey, George Wyndham, Green Spot, Havana Club, Imperial, Imperial Blue, Italicus, J.P. Wiser's, Jacob's Creek, Jameson, Jefferson's, Kahlúa, Kenwood, KI NO BI, Lillet, Long John, L'Orbe, Lot No. 40, Malfy, Malibu, Martell, Method & Madness, Midleton Very Rare, Minttu, Monkey 47, Mumm, Olmeca, Ostoya, Passport Scotch, Pastis 51, Pernod, Perrier-Jouët, Plymouth Gin, Powers, Rabbit Hole, Ramazzotti, Redbreast, Ricard, Royal Salute, Royal Stag, Scapa, Seagram's Gin, Secret Speyside, Smooth Ambler, Something Special, St Hugo, Stoneleigh, Suze, The Glenlivet, TX, Wyborowa, and Ysios. It also provides non-alcoholic beverages under the brands Ceder's, Suze Tonic 0%, Cinzano Spritz 0%, Pacific, Campo Viejo Sparkling 0%, and Jacob's Creek Unvined. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.

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.