The Boston Beer (NYSE:SAM) and Grocery Outlet (NASDAQ:GO) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of current ratings for The Boston Beer and Grocery Outlet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Boston Beer | 1 | 4 | 7 | 0 | 2.50 |
Grocery Outlet | 0 | 2 | 9 | 0 | 2.82 |
The Boston Beer currently has a consensus price target of $1,048.50, suggesting a potential upside of 1.72%. Grocery Outlet has a consensus price target of $46.10, suggesting a potential upside of 30.04%. Given Grocery Outlet's stronger consensus rating and higher probable upside, analysts plainly believe Grocery Outlet is more favorable than The Boston Beer.
Earnings & Valuation
This table compares The Boston Beer and Grocery Outlet's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The Boston Beer | $1.25 billion | 10.12 | $110.04 million | $9.17 | 112.41 |
Grocery Outlet | $2.56 billion | 1.30 | $15.42 million | $0.79 | 44.87 |
The Boston Beer has higher earnings, but lower revenue than Grocery Outlet. Grocery Outlet 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.
Profitability
This table compares The Boston Beer and Grocery Outlet's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Boston Beer | 10.77% | 20.36% | 13.84% |
Grocery Outlet | 3.09% | 17.92% | 6.32% |
Volatility & Risk
The Boston Beer has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500.
Institutional and Insider Ownership
68.8% of The Boston Beer shares are owned by institutional investors. Comparatively, 96.0% of Grocery Outlet shares are owned by institutional investors. 29.1% of The Boston Beer shares are owned by insiders. Comparatively, 15.5% of Grocery Outlet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
The Boston Beer beats Grocery Outlet on 9 of the 14 factors compared between the two stocks.