The Boston Beer Company, Inc. (SAM) vs Constellation Brands Inc (STZ)

The Boston Beer Company, Inc. and Constellation Brands Inc are both Beverages Brewers companies. Constellation Brands Inc is the larger, with a market value of $21.1B against $1.8B — 12.0× the size. The Boston Beer Company, Inc. has negative trailing earnings, so its P/E is not meaningful; Constellation Brands Inc trades at 10.9×. Constellation Brands Inc grew revenue faster over the last twelve months: −4.32% against −6.06%. Constellation Brands Inc has the higher net margin (20.9% vs −3.64%) and the higher return on invested capital (9.11% vs −12.4%). Across the 20 metrics below, Constellation Brands Inc leads on 12 and The Boston Beer Company, Inc. on 8.

Valuation

Metric SAM STZ Beverages Brewers median
P/E n/m 10.90 17.60
P/S 0.92 2.27 0.92
P/B 2.48 2.35 2.23
Price to free cash flow 8.59 11.17 11.17
EV/EBITDA n/m 9.76 9.68
EV/Sales 0.79 3.38 1.13
Earnings yield (3.98%) 9.18% 5.64%
Free cash flow yield 11.64% 8.95% 8.95%

Profitability

Metric SAM STZ Beverages Brewers median
Gross margin 48.88% 52.65% 48.88%
Operating margin (4.71%) 30.23% 8.54%
Net margin (3.64%) 20.90% 3.62%
Free cash flow margin 10.71% 20.32% 12.13%
Return on equity (8.61%) 23.09% 6.89%
Return on assets (5.55%) 8.85% 4.09%
Return on invested capital (12.35%) 9.11% 6.25%

Growth

Metric SAM STZ Beverages Brewers median
Revenue growth (TTM) (6.06%) (4.32%) (1.77%)
EPS growth (last fiscal year) 95.45% 2,235.56% 5.88%
Revenue growth, 5-year CAGR 2.50% 1.19% 4.82%
Net income growth, 5-year CAGR (10.79%) (3.33%) 0.61%

Health

Metric SAM STZ Beverages Brewers median
Debt to equity 0.01 1.16 0.71
Current ratio 1.05 1.00 1.02
Net debt to EBITDA (0.89) 3.33 2.65

Dividend

Metric SAM STZ Beverages Brewers median
Dividend yield — 4.18% 3.57%
Payout ratio — 0.46 0.36

Size

Metric SAM STZ Beverages Brewers median
Market cap 1.76b 21.11b 21.11b

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