Analyzing Ambev (NYSE:ABEV) and Tsingtao Brewery (OTCMKTS:TSGTY)

Ambev (NYSE:ABEV) and Tsingtao Brewery (OTCMKTS:TSGTY) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ambev and Tsingtao Brewery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambev	1	6	0	0	1.86
Tsingtao Brewery	0	0	0	0	0.00

Ambev presently has a consensus price target of $2.35, indicating a potential upside of 4.68%. Given Ambev’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ambev is more favorable than Tsingtao Brewery.

Volatility & Risk

Ambev has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Tsingtao Brewery has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500.

Insider and Institutional Ownership

8.1% of Ambev shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Ambev pays an annual dividend of $0.05 per share and has a dividend yield of 2.2%. Tsingtao Brewery pays an annual dividend of $1.34 per share and has a dividend yield of 4.2%. Ambev pays out 31.3% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Ambev and Tsingtao Brewery”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambev	$16.59 billion	2.13	$2.68 billion	$0.16	14.03
Tsingtao Brewery	$4.47 billion	1.93	$604.42 million	N/A	N/A

Ambev has higher revenue and earnings than Tsingtao Brewery.

Profitability

This table compares Ambev and Tsingtao Brewery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambev	16.18%	15.39%	9.94%
Tsingtao Brewery	N/A	N/A	N/A

Summary

Ambev beats Tsingtao Brewery on 10 of the 12 factors compared between the two stocks.

About Ambev

Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s, and Kokanee brands. The company also provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Pepsi Black, Lipton Iced Tea, Fusion, Pepsi-Cola, Canada Dry, Squirt, Red Rock, Red Bull, 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.

About Tsingtao Brewery

Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products worldwide. It operates through seven segments: Shandong Region; South China Region; North China Region; East China Region; Southeast China Region; Hong Kong, Macau and Other Overseas Region; and Finance Company. The company sells its beer products primarily under the Tsingtao and Laoshan brand names. It also provides wealth management, and agency collection and payment services; and financing, construction, and logistics services, as well as technology promotion and application services. Tsingtao Brewery Company Limited was founded in 1903 and is headquartered in Qingdao, the People's Republic of China.