Analyzing Spirits Capital (OTCMKTS:SSCC) & Compania Cervecerias Unidas (NYSE:CCU)

Compania Cervecerias Unidas (NYSE:CCU) and Spirits Capital (OTCMKTS:SSCC) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares Compania Cervecerias Unidas and Spirits Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compania Cervecerias Unidas	$3.08 billion	0.77	$177.04 million	$0.94	13.71
Spirits Capital	N/A	N/A	-$5.59 million	($0.07)	-31.71

Compania Cervecerias Unidas has higher revenue and earnings than Spirits Capital. Spirits Capital 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.

Institutional and Insider Ownership

24.1% of Compania Cervecerias Unidas shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by company insiders. Comparatively, 29.8% of Spirits Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Compania Cervecerias Unidas has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Spirits Capital has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Compania Cervecerias Unidas and Spirits Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compania Cervecerias Unidas	2	1	0	0	1.33
Spirits Capital	0	0	0	0	0.00

Compania Cervecerias Unidas presently has a consensus target price of $9.70, suggesting a potential downside of 24.75%. Given Compania Cervecerias Unidas’ stronger consensus rating and higher possible upside, research analysts clearly believe Compania Cervecerias Unidas is more favorable than Spirits Capital.

Profitability

This table compares Compania Cervecerias Unidas and Spirits Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compania Cervecerias Unidas	5.56%	8.83%	3.73%
Spirits Capital	N/A	N/A	N/A

Summary

Compania Cervecerias Unidas beats Spirits Capital on 11 of the 12 factors compared between the two stocks.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments: Chile, International Business, and Wine. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea; and mineral, purified, and flavored bottled water, as well as ready-to-mix products with instant powder drinks. In addition, it is involved in the production and distribution of pisco, cocktails, rum, flavored alcoholic beverages, gin, and cider. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. It also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

About Spirits Capital

Spirits Cap Corp. operates a financial technology platform. Its platform provides secured purchase of American whiskey while maturing. The company was incorporated in 1995 and is based in Newport Beach, California.