Heineken (OTCMKTS:HEINY) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Profitability
This table compares Heineken and Anheuser-Busch InBev SA/NV's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Heineken | N/A | N/A | N/A |
Anheuser-Busch InBev SA/NV | -1.57% | 6.84% | 2.26% |
Dividends
Heineken pays an annual dividend of $0.46 per share and has a dividend yield of 0.8%. Anheuser-Busch InBev SA/NV pays an annual dividend of $0.42 per share and has a dividend yield of 0.6%. Heineken pays out 18.9% of its earnings in the form of a dividend. Anheuser-Busch InBev SA/NV pays out 10.3% 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.
Insider & Institutional Ownership
0.3% of Heineken shares are owned by institutional investors. Comparatively, 3.8% of Anheuser-Busch InBev SA/NV shares are owned by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Heineken and Anheuser-Busch InBev SA/NV's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Heineken | $26.54 billion | 2.41 | $2.43 billion | $2.43 | 22.86 |
Anheuser-Busch InBev SA/NV | $52.33 billion | 2.68 | $9.17 billion | $4.08 | 17.06 |
Anheuser-Busch InBev SA/NV has higher revenue and earnings than Heineken. Anheuser-Busch InBev SA/NV is trading at a lower price-to-earnings ratio than Heineken, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Heineken has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Heineken and Anheuser-Busch InBev SA/NV, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Heineken | 2 | 6 | 6 | 0 | 2.29 |
Anheuser-Busch InBev SA/NV | 2 | 13 | 7 | 0 | 2.23 |
Anheuser-Busch InBev SA/NV has a consensus price target of $60.25, suggesting a potential downside of 13.45%. Given Anheuser-Busch InBev SA/NV's higher possible upside, analysts plainly believe Anheuser-Busch InBev SA/NV is more favorable than Heineken.
Summary
Anheuser-Busch InBev SA/NV beats Heineken on 12 of the 16 factors compared between the two stocks.