Pernod Ricard (OTC:PRNDY) & Ambev (NYSE:ABEV) Head to Head Survey

Pernod Ricard (OTC:PRNDYGet Rating) and Ambev (NYSE:ABEVGet Rating) are both large-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Pernod Ricard and Ambev, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pernod Ricard 0 0 0 0 N/A
Ambev 1 3 2 0 2.17

Ambev has a consensus price target of $3.53, suggesting a potential upside of 13.98%. Given Ambev’s higher possible upside, analysts plainly believe Ambev is more favorable than Pernod Ricard.

Profitability

This table compares Pernod Ricard and Ambev’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pernod Ricard N/A N/A N/A
Ambev 17.43% 15.68% 9.91%

Dividends

Pernod Ricard pays an annual dividend of $0.62 per share and has a dividend yield of 1.5%. Ambev pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Ambev pays out 14.3% of its earnings in the form of a dividend.

Volatility and Risk

Pernod Ricard has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Ambev has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Pernod Ricard and Ambev’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pernod Ricard $10.53 billion 5.34 $1.57 billion N/A N/A
Ambev $13.50 billion 3.61 $2.35 billion $0.14 22.14

Ambev has higher revenue and earnings than Pernod Ricard.

Insider and Institutional Ownership

8.5% of Ambev shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Ambev beats Pernod Ricard on 9 of the 12 factors compared between the two stocks.

About Pernod Ricard (Get Rating)

Pernod Ricard SA produces and sells wines and spirits worldwide. It offers its products under various brands. The company was founded in 1805 and is headquartered in Paris, France.

About Ambev (Get Rating)

Ambev S.A., through its subsidiaries, produces, distributes, and sells beer, draft beer, carbonated soft drinks, other non-alcoholic beverages, malt, and food products in the Americas. The company operates through four segments: Brazil; Central America and the Caribbean; Latin America South; and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Brahva Gold, Extra, Bud Light, Beck, Leffe and Hoegaarden, Bucanero, Cristal, Mayabe, Cacique, Presidente, Brahma Light, Presidente Light, Presidente Golden Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, and Budweiser, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith's, and Kokanee brands. The company also provides bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Lipton Iced Tea, Fusion, Do Bem, Pepsi, Canada Dry, Squirt, Red Rock, Pepsi-Cola, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike's brands. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.

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