Ambev (ABEV) Competitors

Ambev (NYSE:ABEV) and Diageo (NYSE:DEO) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their media sentiment, institutional ownership, valuation, risk, analyst recommendations, community ranking, profitability, dividends and earnings.

Do analysts rate ABEV or DEO?

Ambev presently has a consensus price target of $2.70, suggesting a potential upside of 33.66%. Given Ambev's stronger consensus rating and higher possible upside, research analysts clearly believe Ambev is more favorable than Diageo.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambev	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33
Diageo	2 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.25

Is ABEV or DEO a better dividend stock?

Ambev pays an annual dividend of $0.12 per share and has a dividend yield of 5.9%. Diageo pays an annual dividend of $5.01 per share and has a dividend yield of 4.0%. Ambev pays out 66.7% of its earnings in the form of a dividend. Diageo pays out 72.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ambev is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has preferable earnings & valuation, ABEV or DEO?

Diageo has lower revenue, but higher earnings than Ambev. Ambev is trading at a lower price-to-earnings ratio than Diageo, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambev	$82.41B	0.39	$2.90B	$0.18	11.22
Diageo	$20.27B	3.44	$3.87B	$6.90	18.17

Which has more risk and volatility, ABEV or DEO?

Ambev has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Diageo has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Is ABEV or DEO more profitable?

Ambev has a net margin of 17.02% compared to Diageo's net margin of 0.00%. Ambev's return on equity of 16.12% beat Diageo's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Ambev	17.02%	16.12%	10.48%
Diageo	N/A	N/A	N/A

Does the MarketBeat Community believe in ABEV or DEO?

Ambev received 83 more outperform votes than Diageo when rated by MarketBeat users. Likewise, 60.80% of users gave Ambev an outperform vote while only 59.28% of users gave Diageo an outperform vote.

Company	Underperform	Outperform
Ambev	Outperform Votes 380 60.80%	Underperform Votes 245 39.20%
Diageo	Outperform Votes 297 59.28%	Underperform Votes 204 40.72%

Does the media favor ABEV or DEO?

In the previous week, Ambev had 2 more articles in the media than Diageo. MarketBeat recorded 11 mentions for Ambev and 9 mentions for Diageo. Diageo's average media sentiment score of 0.86 beat Ambev's score of 0.27 indicating that Diageo is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Ambev	3 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Neutral
Diageo	7 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals & insiders hold more shares of ABEV or DEO?

8.1% of Ambev shares are owned by institutional investors. Comparatively, 9.0% of Diageo shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Ambev beats Diageo on 12 of the 19 factors compared between the two stocks.