Contrasting Compania Cervecerias Unidas (CCU) & Its Rivals

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

Insider & Institutional Ownership

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

Profitability

This table compares Compania Cervecerias Unidas and its peers’ 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	4.89%	7.40%	4.06%

Valuation and Earnings

This table compares Compania Cervecerias Unidas and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Compania Cervecerias Unidas	$2,976.21 billion	$177.04 million	14.34
Compania Cervecerias Unidas Competitors	$144.66 billion	$869.15 million	22.83

Compania Cervecerias Unidas has higher revenue, but lower earnings than its peers. Compania Cervecerias Unidas is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Compania Cervecerias Unidas and its peers, as reported by MarketBeat.

	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	1465	1462	59	2.37

Compania Cervecerias Unidas currently has a consensus price target of $9.70, indicating a potential downside of 28.04%. As a group, “BEVERAGES – ALCOH” companies have a potential upside of 31.42%. Given Compania Cervecerias Unidas’ peers stronger consensus rating and higher possible upside, analysts plainly believe Compania Cervecerias Unidas has less favorable growth aspects than its peers.

Risk and Volatility

Compania Cervecerias Unidas has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Compania Cervecerias Unidas’ peers have a beta of 1.58, meaning that their average stock price is 58% more volatile than the S&P 500.

Dividends

Compania Cervecerias Unidas pays an annual dividend of $0.25 per share and has a dividend yield of 1.9%. Compania Cervecerias Unidas pays out 26.6% of its earnings in the form of a dividend. As a group, “BEVERAGES – ALCOH” companies pay a dividend yield of 2.5% and pay out 68.9% of their earnings in the form of a dividend.

Summary

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

Compania Cervecerias Unidas Company Profile

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.