Pernod Ricard (OTC:PRNDY) & Ambev (NYSE:ABEV) Head-to-head survey


Pernod Ricard (OTC:PRNDY – Get Rating) and Ambev (NYSE:ABEV – Get Rating) are both large-cap consumer staples companies, but which is the better stock? We’ll compare the two companies based on earnings strength, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Pernod Ricard and Ambev, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Pernod Ricard 0 0 0 0 N / A
Ambev 1 3 2 0 2.17

Ambev has a consensus price target of $3.53, suggesting a potential upside of 13.98%. Given Ambev’s possible higher upside, analysts clearly think Ambev is more favorable than Pernod Ricard.

Profitability

This table compares the net margins, return on equity and return on assets of Pernod Ricard and Ambev.

Net margins Return on equity return on assets
Pernod Ricard N / A N / A N / A
Ambev 17.43% 15.68% 9.91%

Dividends

Pernod Ricard pays an annual dividend of $0.62 per share and has a dividend yield of 1.5%. Ambev pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Ambev distributes 14.3% of its profits as a dividend.

Volatility and risk

Pernod Ricard has a beta of 0.58, suggesting its stock price is 42% less volatile than the S&P 500. In comparison, Ambev has a beta of 1.11, suggesting its stock price is 11% more volatile than the S&P 500.

Valuation and benefits

This table compares gross revenue, earnings per share (EPS) and valuation of Pernod Ricard and Ambev.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Pernod Ricard $10.53 billion 5.34 $1.57 billion N / A N / A
Ambev $13.50 billion 3.61 $2.35 billion $0.14 22.14

Ambev has higher revenues and profits than Pernod Ricard.

Insider and Institutional Ownership

8.5% of Ambev shares are held by institutional investors. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is ripe for long-term growth.

Summary

Ambev beats Pernod Ricard on 9 of the 12 factors compared between the two values.

About Pernod Ricard (Get an evaluation)

Pernod Ricard SA produces and markets wines and spirits worldwide. It offers its products under different brands. The company was founded in 1805 and is based in Paris, France.

About Ambev (Get an evaluation)

Ambev logoAmbev SA, through its subsidiaries, produces, distributes and sells beer, draft beer, soft drinks, other non-alcoholic beverages, malt and food products in the Americas. The Company operates through four segments: Brazil; Central America and the Caribbean; South Latin America; and Canada. It offers beer mainly under the brands Skol, Brahma, Antarctica, Brahva, Brahva Gold, Extra, Bud Light, Beck, Leffe and Hoegaarden, Bucanero, Cristal, Mayabe, Cacique, Presidente, Brahma Light, Presidente Light, Presidente Golden Light , Bohemia, The One, Corona, Modelo Especial, Stella Artois and Budweiser, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith’s and Kokanee. The Company also provides bottled water, isotonic drinks, energy drinks, coconut water, powdered and natural juices and ready-to-drink teas under the brands Guaraná Antarctica, Gatorade, H2OH!, Lipton Iced Tea, Fusion, Do Bem, Pepsi, Canada Dry, Squirt, Red Rock, Pepsi-Cola, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay and Mike’s. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is based in São Paulo, Brazil. Ambev SA is a subsidiary of Interbrew International BV



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