Philip Morris International (NYSE:PM) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both large-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Profitability
This table compares Philip Morris International and Anheuser-Busch InBev SA/NV's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Philip Morris International | 10.07% | -78.02% | 20.17% |
| Anheuser-Busch InBev SA/NV | -1.57% | 6.84% | 2.26% |
Volatility & Risk
Philip Morris International has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Philip Morris International and Anheuser-Busch InBev SA/NV, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Philip Morris International | 0 | 4 | 7 | 0 | 2.64 |
| Anheuser-Busch InBev SA/NV | 2 | 13 | 7 | 0 | 2.23 |
Philip Morris International presently has a consensus price target of $100.3333, indicating a potential upside of 6.67%. Anheuser-Busch InBev SA/NV has a consensus price target of $60.25, indicating a potential downside of 14.16%. Given Philip Morris International's stronger consensus rating and higher possible upside, equities analysts plainly believe Philip Morris International is more favorable than Anheuser-Busch InBev SA/NV.
Insider and Institutional Ownership
74.2% of Philip Morris International shares are held by institutional investors. Comparatively, 3.8% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. 0.2% of Philip Morris International shares are held by company insiders. Comparatively, 4.5% of Anheuser-Busch InBev SA/NV shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Philip Morris International pays an annual dividend of $4.80 per share and has a dividend yield of 5.1%. Anheuser-Busch InBev SA/NV pays an annual dividend of $0.42 per share and has a dividend yield of 0.6%. Philip Morris International pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anheuser-Busch InBev SA/NV pays out 10.3% of its earnings in the form of a dividend. Philip Morris International has increased its dividend for 12 consecutive years. Philip Morris International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Philip Morris International and Anheuser-Busch InBev SA/NV's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Philip Morris International | $77.92 billion | 1.88 | $7.19 billion | $5.19 | 18.12 |
| Anheuser-Busch InBev SA/NV | $52.33 billion | 2.71 | $9.17 billion | $4.08 | 17.21 |
Anheuser-Busch InBev SA/NV has lower revenue, but higher earnings than Philip Morris International. Anheuser-Busch InBev SA/NV is trading at a lower price-to-earnings ratio than Philip Morris International, indicating that it is currently the more affordable of the two stocks.
Summary
Philip Morris International beats Anheuser-Busch InBev SA/NV on 10 of the 16 factors compared between the two stocks.
