Head to Head Contrast: Anheuser Busch Inbev (BUD) versus San Miguel (SMGBY)

Anheuser Busch Inbev (NYSE:BUD) and San Miguel (OTCMKTS:SMGBY) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Earnings & Valuation

This table compares Anheuser Busch Inbev and San Miguel’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anheuser Busch Inbev $56.44 billion 2.30 $8.00 billion $4.04 18.94
San Miguel $16.23 billion 0.46 $558.85 million N/A N/A

Anheuser Busch Inbev has higher revenue and earnings than San Miguel.

Volatility and Risk

Anheuser Busch Inbev has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, San Miguel has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Profitability

This table compares Anheuser Busch Inbev and San Miguel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anheuser Busch Inbev 12.64% 18.68% 6.02%
San Miguel 3.39% 6.39% 2.07%

Analyst Ratings

This is a breakdown of current recommendations for Anheuser Busch Inbev and San Miguel, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anheuser Busch Inbev 2 2 9 0 2.54
San Miguel 0 0 0 0 N/A

Anheuser Busch Inbev presently has a consensus target price of $113.26, indicating a potential upside of 48.03%. Given Anheuser Busch Inbev’s higher probable upside, research analysts clearly believe Anheuser Busch Inbev is more favorable than San Miguel.

Insider & Institutional Ownership

4.6% of Anheuser Busch Inbev shares are held by institutional investors. 4.5% of Anheuser Busch Inbev shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Anheuser Busch Inbev pays an annual dividend of $3.71 per share and has a dividend yield of 4.8%. San Miguel pays an annual dividend of $0.18 per share and has a dividend yield of 0.6%. Anheuser Busch Inbev pays out 91.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anheuser Busch Inbev has raised its dividend for 8 consecutive years. Anheuser Busch Inbev is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Anheuser Busch Inbev beats San Miguel on 14 of the 15 factors compared between the two stocks.

About Anheuser Busch Inbev

Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, including Budweiser, Corona, and Stella Artois; Beck's, Castle, Castle Lite, Hoegaarden, and Leffe; and Aguila, Antarctica, Bud Light, Brahma, Cass, Chernigivske, Cristal, Harbin, Jupiler, Klinskoye, Michelob Ultra, Modelo Especial, Quilmes, Victoria, Sedrin, Sibirskaya Korona, and Skol. The company was founded in 1366 and is headquartered in Leuven, Belgium.

About San Miguel

San Miguel Corporation engages in beverages, food, packaging, energy, fuel and oil, infrastructure, and real estate property management and development businesses in the Philippines and internationally. The company's Beverage segment produces and markets alcoholic and non-alcoholic beverages. Its Food segment is involved in feeds production; poultry and livestock farming; the processing and sale of poultry and meat products; processing and marketing refrigerated processed and canned meat products; manufacturing and marketing flour, flour mixes, bakery ingredients, butter, margarine, cheese, milk, ice cream, jelly snacks and desserts, specialty oils, salad aids, snacks, and condiments; importing and marketing coffee and coffee-related products; and grain terminal handling. The company's Packaging segment produces and markets packaging products, such as glass containers and molds, polyethylene terephthalate (PET) bottles and preforms, PET recycling, plastic and metal closures, corrugated cartons, woven polypropylene, Kraft sacks and paperboards, pallets, flexible packaging, two-piece aluminum cans, woven products, industrial laminates, and radiant barriers, as well as plastic crates, floorings, films, trays, pails, and tubs. This segment also engages in the crate and plastic pallet leasing, PET bottle filling graphics design, packaging research and testing, packaging development and consultation, and contract packaging and trading activities. Its Energy segment generates, sells, retails, and distributes power. The company's Fuel and Oil segment refines and markets petroleum products. Its Infrastructure segment constructs and develops various infrastructure projects, such as airports, roads, highways, toll roads, freeways, skyways, flyovers, viaducts, interchanges, and mass rail transit systems. The company was founded in 1890 and is headquartered in Mandaluyong City, the Philippines. San Miguel Corporation is a subsidiary of Top Frontier Investment Holdings, Inc.

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