Compania Cervecerias Unidas (CCU) vs. Its Rivals Head-To-Head Survey

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

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%

Institutional & 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 company insiders. Comparatively, 14.0% of shares of all “BEVERAGES – ALCOH” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Compania Cervecerias Unidas pays an annual dividend of $0.26 per share and has a dividend yield of 2.1%. 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 -17.5% and pay out -489.9% of their earnings in the form of a dividend.

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	$3.08 billion	$177.04 million	12.97
Compania Cervecerias Unidas Competitors	$9.52 billion	$869.03 million	22.35

Compania Cervecerias Unidas’ peers have higher revenue and earnings than Compania Cervecerias Unidas. 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.

Volatility and Risk

Compania Cervecerias Unidas has a beta of 0.67, meaning that its share 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 share price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Compania Cervecerias Unidas and its peers, 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	1472	1464	60	2.37

Compania Cervecerias Unidas presently has a consensus price target of $9.70, indicating a potential downside of 20.46%. As a group, “BEVERAGES – ALCOH” companies have a potential upside of 35.47%. Given Compania Cervecerias Unidas’ peers stronger consensus rating and higher possible upside, analysts clearly believe Compania Cervecerias Unidas has less favorable growth aspects than its peers.

Summary

Compania Cervecerias Unidas peers beat Compania Cervecerias Unidas on 12 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.