The Boston Beer (NYSE:SAM) and BRF (NYSE:BRFS) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
68.8% of The Boston Beer shares are owned by institutional investors. Comparatively, 8.0% of BRF shares are owned by institutional investors. 29.1% of The Boston Beer shares are owned by insiders. Comparatively, 1.0% of BRF shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
The Boston Beer has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, BRF has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for The Boston Beer and BRF, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The Boston Beer | 1 | 4 | 7 | 0 | 2.50 |
BRF | 0 | 3 | 1 | 0 | 2.25 |
The Boston Beer currently has a consensus price target of $1,048.50, indicating a potential upside of 1.72%. BRF has a consensus price target of $4.50, indicating a potential upside of 11.39%. Given BRF's higher probable upside, analysts clearly believe BRF is more favorable than The Boston Beer.
Profitability
This table compares The Boston Beer and BRF's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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The Boston Beer | 10.77% | 20.36% | 13.84% |
BRF | 3.22% | 16.28% | 2.55% |
Earnings and Valuation
This table compares The Boston Beer and BRF's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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The Boston Beer | $1.25 billion | 10.12 | $110.04 million | $9.17 | 112.41 |
BRF | $8.13 billion | 0.40 | $41.22 million | $0.36 | 11.22 |
The Boston Beer has higher earnings, but lower revenue than BRF. BRF 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.
Summary
The Boston Beer beats BRF on 11 of the 14 factors compared between the two stocks.