Ambev S.A. (ABEV) vs Molson Coors Beverage Company (TAP)

Ambev S.A. and Molson Coors Beverage Company are both Beverages Brewers companies. Ambev S.A. is the larger, with a market value of $44.2B against $6.9B — 6.4× the size. Molson Coors Beverage Company has negative trailing earnings, so its P/E is not meaningful; Ambev S.A. trades at 16.2×. Molson Coors Beverage Company grew revenue faster over the last twelve months: −1.77% against −4.31%. Ambev S.A. has the higher net margin (17.5% vs −20.8%) and the higher return on invested capital (17.4% vs −9.90%). Both pay a dividend; Ambev S.A. yields more (5.99% vs 2.71%). Across the 22 metrics below, Ambev S.A. leads on 15 and Molson Coors Beverage Company on 7.

Valuation

Metric ABEV TAP Beverages Brewers median
P/E 16.17 n/m 16.53
P/S 2.91 0.61 0.88
P/B 2.58 0.65 2.23
Price to free cash flow 16.40 5.01 10.33
EV/EBITDA 8.34 6.51 9.41
EV/Sales 2.70 1.11 1.11
Earnings yield 6.19% (32.07%) 5.65%
Free cash flow yield 6.10% 19.95% 9.68%

Profitability

Metric ABEV TAP Beverages Brewers median
Gross margin 51.26% 37.01% 48.88%
Operating margin 25.75% (22.71%) 8.54%
Net margin 17.51% (20.81%) 3.62%
Free cash flow margin 17.72% 12.13% 12.13%
Return on equity 16.15% (19.26%) 6.89%
Return on assets 10.43% (9.01%) 4.09%
Return on invested capital 17.44% (9.90%) 6.25%

Growth

Metric ABEV TAP Beverages Brewers median
Revenue growth (TTM) (4.31%) (1.77%) (1.77%)
EPS growth (last fiscal year) 5.88% (300.93%) —
Revenue growth, 5-year CAGR 6.89% 2.91% 4.82%
Net income growth, 5-year CAGR 4.69% 0.00% 0.61%

Health

Metric ABEV TAP Beverages Brewers median
Debt to equity 0.03 0.75 0.71
Current ratio 1.02 0.88 1.02
Net debt to EBITDA (0.59) 2.65 2.65

Dividend

Metric ABEV TAP Beverages Brewers median
Dividend yield 5.99% 2.71% 2.14%
Payout ratio 0.85 8.32 0.55

Size

Metric ABEV TAP Beverages Brewers median
Market cap 44.16b 6.85b 19.50b

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