Celsius (NASDAQ:CELH) and The Boston Beer (NYSE:SAM) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Earnings and Valuation
This table compares Celsius and The Boston Beer's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Celsius | $75.15 million | 51.18 | $9.97 million | ($0.02) | -2,652.00 |
| The Boston Beer | $1.25 billion | 10.12 | $110.04 million | $9.17 | 112.41 |
The Boston Beer has higher revenue and earnings than Celsius. Celsius is trading at a lower price-to-earnings ratio than The Boston Beer, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Celsius and The Boston Beer, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Celsius | 0 | 2 | 2 | 0 | 2.50 |
| The Boston Beer | 1 | 4 | 7 | 0 | 2.50 |
Celsius currently has a consensus target price of $36.25, indicating a potential downside of 31.66%. The Boston Beer has a consensus target price of $1,048.50, indicating a potential upside of 1.72%. Given The Boston Beer's higher possible upside, analysts clearly believe The Boston Beer is more favorable than Celsius.
Profitability
This table compares Celsius and The Boston Beer's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Celsius | 4.77% | 8.28% | 5.96% |
| The Boston Beer | 10.77% | 20.36% | 13.84% |
Risk and Volatility
Celsius has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500. Comparatively, The Boston Beer has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Institutional and Insider Ownership
54.0% of Celsius shares are held by institutional investors. Comparatively, 68.8% of The Boston Beer shares are held by institutional investors. 37.6% of Celsius shares are held by company insiders. Comparatively, 29.1% of The Boston Beer shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
The Boston Beer beats Celsius on 9 of the 13 factors compared between the two stocks.
