Financial Survey: Compania Cervecerias Unidas (CCU) and Its Rivals

Compania Cervecerias Unidas (NYSE:CCU) is one of 30 public companies in the “BEVERAGES – ALCOH” industry, but how does it weigh in compared to its rivals? We will compare Compania Cervecerias Unidas to similar companies based on the strength of its valuation, dividends, risk, profitability, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

24.1% of Compania Cervecerias Unidas shares are owned by institutional investors. Comparatively, 37.9% of shares of all “BEVERAGES – ALCOH” companies are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by insiders. Comparatively, 14.0% of shares of all “BEVERAGES – ALCOH” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Compania Cervecerias Unidas and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compania Cervecerias Unidas	2	1	0	0	1.33
Compania Cervecerias Unidas Competitors	358	1462	1460	59	2.37

Compania Cervecerias Unidas currently has a consensus price target of $9.70, indicating a potential downside of 24.75%. As a group, “BEVERAGES – ALCOH” companies have a potential upside of 38.64%. Given Compania Cervecerias Unidas’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Compania Cervecerias Unidas has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Compania Cervecerias Unidas and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Compania Cervecerias Unidas	$3.08 billion	$177.04 million	13.71
Compania Cervecerias Unidas Competitors	$9.52 billion	$869.15 million	7.50

Compania Cervecerias Unidas’ rivals have higher revenue and earnings than Compania Cervecerias Unidas. Compania Cervecerias Unidas is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Compania Cervecerias Unidas pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. Compania Cervecerias Unidas pays out 27.7% of its earnings in the form of a dividend. As a group, “BEVERAGES – ALCOH” companies pay a dividend yield of 2.7% and pay out 62.7% of their earnings in the form of a dividend.

Volatility & Risk

Compania Cervecerias Unidas has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Compania Cervecerias Unidas’ rivals have a beta of 1.70, suggesting that their average share price is 70% more volatile than the S&P 500.

Profitability

This table compares Compania Cervecerias Unidas and its rivals’ 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%
Compania Cervecerias Unidas Competitors	5.15%	7.26%	4.06%

Summary

Compania Cervecerias Unidas rivals beat Compania Cervecerias Unidas on 11 of the 15 factors compared.

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.