Boston Beer (NYSE:SAM) and Heineken (OTCMKTS:HEINY) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Risk and Volatility

Boston Beer has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Heineken has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Valuation and Earnings

This table compares Boston Beer and Heineken’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boston Beer $862.99 million 3.58 $99.04 million $6.01 44.76
Heineken $24.73 billion 2.10 $2.19 billion $2.23 20.18

Heineken has higher revenue and earnings than Boston Beer. Heineken is trading at a lower price-to-earnings ratio than Boston Beer, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.5% of Boston Beer shares are owned by institutional investors. Comparatively, 0.2% of Heineken shares are owned by institutional investors. 29.2% of Boston Beer shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Boston Beer and Heineken, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Beer 2 9 1 0 1.92
Heineken 0 2 0 0 2.00

Boston Beer currently has a consensus price target of $261.17, indicating a potential downside of 2.92%. Given Boston Beer’s higher possible upside, equities research analysts plainly believe Boston Beer is more favorable than Heineken.

Dividends

Heineken pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. Boston Beer does not pay a dividend. Heineken pays out 24.2% of its earnings in the form of a dividend.

Profitability

This table compares Boston Beer and Heineken’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boston Beer 10.17% 18.00% 13.08%
Heineken N/A N/A N/A

Summary

Boston Beer beats Heineken on 11 of the 16 factors compared between the two stocks.

Boston Beer Company Profile

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It sells approximately 60 beers under the Samuel Adams brand names; 10 flavored malt beverages under the Twisted Tea brand name; 20 hard cider beverages under the Angry Orchard brand; 5 hard sparkling waters under the Truly Spiked & Sparkling brand name; and approximately 50 beers under 4 brand names. The company markets and sells its products to a network of approximately 350 wholesalers that in turn sell to retailers, such as pubs, restaurants, grocery stores, convenience stores, package stores, stadiums, and other retail outlets in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.

Heineken Company Profile

Heineken N.V. engages in brewing and selling beer and cider. The company operates through Africa, Middle East & Eastern Europe; Americas; Asia Pacific; and Europe segments. It offers beer, cider, soft drinks, and other beverages. The company offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Tecate, Red Stripe, Krušovice, Birra Morett, Affligem, and Lagunitas brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Stassen, Bulmers, Old Mout, and Blind Pig brands. It offers its products to retailers, bars, and restaurants through distributors. The company was founded in 1864 and is headquartered in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.

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