Analyzing Compania Cervecerias Unidas, (CCU) and Craft Brew Alliance (BREW)

Compania Cervecerias Unidas, (NYSE: CCU) and Craft Brew Alliance (NASDAQ:BREW) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitabiliy, risk, earnings, analyst recommendations, dividends and valuation.

Dividends

Compania Cervecerias Unidas, pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Craft Brew Alliance does not pay a dividend. Compania Cervecerias Unidas, pays out 32.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Compania Cervecerias Unidas, and Craft Brew Alliance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Compania Cervecerias Unidas, 0 2 0 0 2.00
Craft Brew Alliance 0 1 2 0 2.67

Compania Cervecerias Unidas, currently has a consensus target price of $24.75, suggesting a potential downside of 6.32%. Craft Brew Alliance has a consensus target price of $20.00, suggesting a potential upside of 20.12%. Given Craft Brew Alliance’s stronger consensus rating and higher possible upside, analysts plainly believe Craft Brew Alliance is more favorable than Compania Cervecerias Unidas,.

Insider & Institutional Ownership

12.9% of Compania Cervecerias Unidas, shares are owned by institutional investors. Comparatively, 31.8% of Craft Brew Alliance shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas, shares are owned by company insiders. Comparatively, 3.7% of Craft Brew Alliance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Compania Cervecerias Unidas, has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Craft Brew Alliance has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Compania Cervecerias Unidas, and Craft Brew Alliance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Compania Cervecerias Unidas, 7.58% 10.48% 6.88%
Craft Brew Alliance 0.53% 1.25% 0.73%

Valuation & Earnings

This table compares Compania Cervecerias Unidas, and Craft Brew Alliance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Compania Cervecerias Unidas, $2.36 billion 2.07 $419.75 million $0.98 26.96
Craft Brew Alliance $207.59 million 1.54 $13.92 million $0.06 277.55

Compania Cervecerias Unidas, has higher revenue and earnings than Craft Brew Alliance. Compania Cervecerias Unidas, is trading at a lower price-to-earnings ratio than Craft Brew Alliance, indicating that it is currently the more affordable of the two stocks.

Summary

Compania Cervecerias Unidas, beats Craft Brew Alliance on 9 of the 16 factors compared between the two stocks.

Compania Cervecerias Unidas, Company Profile

Compania Cervecerias Unidas S.A. is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. The Company operates as a brewer, soft drinks producer, water and nectar producer, wine producer and pisco distributor. The Company’s segments include Chile, International Business and Wine. The Company carries a portfolio of products, which includes a range of brands of alcoholic and non-alcoholic beer, with Cristal as its primary brand in Chile. In addition, it produces and distributes Heineken beer; distributes Sol beer and Budweiser beer, and distributes and produces Kunstmann and Austral beer in Chile. The International Business segment includes operations in Argentina, Paraguay and Uruguay. The Company, through Vina San Pedro Tarapaca S.A. (VSPT), produces and markets a range of wine products for the domestic and mainly the export market.

Craft Brew Alliance Company Profile

Craft Brew Alliance, Inc. is a craft brewing company that is engaged in brewing, branding and bringing to market American craft beers. The Company operates through two segments: Beer Related operations, which include the brewing operations and related domestic and international beer and cider sales of its Kona, Widmer Brothers, Redhook and Omission beer brands, and Square Mile cider brand, and Pubs operations, which include its approximately five pubs, over four of which are located adjacent to its Beer Related operations, as well as other merchandise sales, and sales of its beers directly to customers. The Company’s portfolio of brands includes the Kona Brewing Company, Widmer Brothers Brewing, Redhook Brewery, Omission Beer and Square Mile Cider Company brand families, along with partner brands Appalachian Mountain Brewery, Cisco Brewers and Resignation Brewery. Its brews its beers using hops, malted barley, wheat, rye and other natural traditional and nontraditional ingredients.

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