Ambev S.A. (ABEV) vs Anheuser-Busch InBev SA/NV (BUD)

Ambev S.A. and Anheuser-Busch InBev SA/NV are both Beverages Brewers companies. Anheuser-Busch InBev SA/NV is the larger, with a market value of $136.1B against $44.2B — 3.1× the size. Ambev S.A. trades at the lower P/E: 16.2× against 16.5×. Anheuser-Busch InBev SA/NV grew revenue faster over the last twelve months: 7.00% against −4.31%. Ambev S.A. has the higher net margin (17.5% vs 14.9%) and the higher return on invested capital (17.4% vs 6.25%). Both pay a dividend; Ambev S.A. yields more (5.99% vs 1.56%). Across the 23 metrics below, Ambev S.A. leads on 13 and Anheuser-Busch InBev SA/NV on 10.

Valuation

Metric ABEV BUD Beverages Brewers median
P/E 16.17 16.53 16.53
P/S 2.91 2.46 0.88
P/B 2.58 1.52 2.23
Price to free cash flow 16.40 8.60 10.33
EV/EBITDA 8.34 13.21 9.41
EV/Sales 2.70 3.48 1.11
Earnings yield 6.19% 6.05% 5.65%
Free cash flow yield 6.10% 11.63% 9.68%

Profitability

Metric ABEV BUD Beverages Brewers median
Gross margin 51.26% 56.49% 48.88%
Operating margin 25.75% 26.32% 8.54%
Net margin 17.51% 14.90% 3.62%
Free cash flow margin 17.72% 28.60% 12.13%
Return on equity 16.15% 9.80% 6.89%
Return on assets 10.43% 4.34% 4.09%
Return on invested capital 17.44% 6.25% 6.25%

Growth

Metric ABEV BUD Beverages Brewers median
Revenue growth (TTM) (4.31%) 7.00% (1.77%)
EPS growth (last fiscal year) 5.88% 18.15% —
Revenue growth, 5-year CAGR 6.89% 4.82% 4.82%
Net income growth, 5-year CAGR 4.69% 37.23% 0.61%

Health

Metric ABEV BUD Beverages Brewers median
Debt to equity 0.03 0.71 0.71
Current ratio 1.02 0.66 1.02
Net debt to EBITDA (0.59) 2.87 2.65

Dividend

Metric ABEV BUD Beverages Brewers median
Dividend yield 5.99% 1.56% 2.14%
Payout ratio 0.85 0.27 0.55

Size

Metric ABEV BUD Beverages Brewers median
Market cap 44.16b 136.06b 19.50b

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