Compania Cervecerias Unidas, (NYSE: CCU) and Molson Coors Brewing Company (NYSE:TAP) are both mid-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitabiliy, earnings, valuation, institutional ownership and analyst recommendations.
This is a summary of recent ratings and price targets for Compania Cervecerias Unidas, and Molson Coors Brewing Company, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Compania Cervecerias Unidas,||0||2||0||0||2.00|
|Molson Coors Brewing Company||0||4||5||0||2.56|
Compania Cervecerias Unidas, currently has a consensus price target of $24.75, indicating a potential downside of 4.95%. Molson Coors Brewing Company has a consensus price target of $114.33, indicating a potential upside of 32.75%. Given Molson Coors Brewing Company’s stronger consensus rating and higher possible upside, analysts plainly believe Molson Coors Brewing Company is more favorable than Compania Cervecerias Unidas,.
Compania Cervecerias Unidas, pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Molson Coors Brewing Company pays an annual dividend of $1.64 per share and has a dividend yield of 1.9%. Compania Cervecerias Unidas, pays out 32.7% of its earnings in the form of a dividend. Molson Coors Brewing Company pays out 17.6% 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. Molson Coors Brewing Company is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
12.9% of Compania Cervecerias Unidas, shares are owned by institutional investors. Comparatively, 76.3% of Molson Coors Brewing Company shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas, shares are owned by insiders. Comparatively, 2.5% of Molson Coors Brewing Company shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Compania Cervecerias Unidas, and Molson Coors Brewing Company’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Compania Cervecerias Unidas,||$2.39 billion||2.01||$425.42 million||$0.98||26.57|
|Molson Coors Brewing Company||$6.68 billion||2.78||$1.35 billion||$9.32||9.24|
Molson Coors Brewing Company has higher revenue and earnings than Compania Cervecerias Unidas,. Molson Coors Brewing Company is trading at a lower price-to-earnings ratio than Compania Cervecerias Unidas,, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Compania Cervecerias Unidas, has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Molson Coors Brewing Company has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
This table compares Compania Cervecerias Unidas, and Molson Coors Brewing Company’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%|
|Molson Coors Brewing Company||23.53%||6.73%||3.02%|
Molson Coors Brewing Company beats Compania Cervecerias Unidas, on 12 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.
Molson Coors Brewing Company Company Profile
Molson Coors Brewing Company (MCBC) is a holding company. The Company operates as a brewer. The Company’s segments include MillerCoors LLC (United States segment), operating in the United States; Molson Coors Canada (Canada segment), operating in Canada; Molson Coors Europe (Europe segment), operating in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Republic of Ireland, Romania, Serbia, the United Kingdom and various other European countries; Molson Coors International (Molson Coors International segment), operating in various other countries, and Corporate. The Company brews, markets, sells and distributes a range of beer brands. The Company offers a portfolio of owned and partner brands, including Carling, Coors Light, Miller Lite, Molson Canadian and Staropramen, as well as craft and specialty beers, such as the Blue Moon Brewing Company brands, the Jacob Leinenkugel Brewing Company brands, Creemore Springs, Cobra and Doom Bar.
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