Molson Coors Beverage (NYSE:TAP) & Suntory Beverage & Food (OTCMKTS:STBFY) Critical Comparison

Molson Coors Beverage (NYSE:TAP) and Suntory Beverage & Food (OTCMKTS:STBFY) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Dividends

Molson Coors Beverage pays an annual dividend of $1.76 per share and has a dividend yield of 2.7%. Suntory Beverage & Food pays an annual dividend of $13.97 per share and has a dividend yield of 83.0%. Molson Coors Beverage pays out 40.4% of its earnings in the form of a dividend. Suntory Beverage & Food pays out 23.0% 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. Molson Coors Beverage has raised its dividend for 3 consecutive years. Suntory Beverage & Food is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Molson Coors Beverage and Suntory Beverage & Food’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Molson Coors Beverage	$13.88 billion	1.03	$948.90 million	$4.36	15.22
Suntory Beverage & Food	N/A	N/A	N/A	$60.68	0.28

Molson Coors Beverage has higher revenue and earnings than Suntory Beverage & Food. Suntory Beverage & Food is trading at a lower price-to-earnings ratio than Molson Coors Beverage, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Molson Coors Beverage and Suntory Beverage & Food’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Molson Coors Beverage	6.83%	8.89%	4.47%
Suntory Beverage & Food	N/A	N/A	N/A

Insider & Institutional Ownership

78.5% of Molson Coors Beverage shares are owned by institutional investors. Comparatively, 0.7% of Suntory Beverage & Food shares are owned by institutional investors. 2.3% of Molson Coors Beverage shares are owned by 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 Recommendations

This is a summary of recent recommendations for Molson Coors Beverage and Suntory Beverage & Food, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Molson Coors Beverage	1	10	2	0	2.08
Suntory Beverage & Food	0	0	1	0	3.00

Molson Coors Beverage currently has a consensus price target of $68.20, suggesting a potential upside of 2.80%. Given Molson Coors Beverage’s higher probable upside, analysts clearly believe Molson Coors Beverage is more favorable than Suntory Beverage & Food.

Summary

Molson Coors Beverage beats Suntory Beverage & Food on 10 of the 14 factors compared between the two stocks.

About Molson Coors Beverage

Molson Coors Beverage Company manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers flavored malt beverages including hard seltzers, craft, spirits and energy, and ready to drink beverages. It provides its products under Aspall Cider, Blue Moon, Coors Original, Five Trail, Hop Valley brands, Leinenkugel's, Madri, Miller Genuine Draft, Molson Ultra, Sharp's, Staropramen, and Vizzy Hard Seltzer above premier brands; Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands; and Branik, Icehouse, Keystone, Miller High Life, Milwaukee's Best, and Steel Reserve under the economy brands. The company was formerly known as Molson Coors Brewing Company and changed its name to Molson Coors Beverage Company in January 2020. Molson Coors Beverage Company was founded in 1774 and is based in Golden, Colorado.

About Suntory Beverage & Food

Suntory Beverage & Food Limited engages in manufacture and sale of alcoholic and non-alcoholic beverages, and foods in Japan, Asia-Pacific, Europe, and the Americas. It offers mineral water, coffee drinks, tea drinks, carbonated drinks, sports drinks, and food for specified health uses. It offers its products under various brands, including Suntory Tennensui, BOSS, Suntory Green Tea Iyemon, Suntory Green Tea Iyemon Tokucha (FOSHU), GREEN DAKARA, Pepsi Big, C.C.Lemon, Natchan, Orangina, Oasis, Lucozade, Ribena, Schweppes, MayTea, TEA+, MYTEA Oolong Tea, Sting, Okky, goodmood, BRAND'S Essence of Chicken, V, and Nature's Twist. The company was incorporated in 2009 and is headquartered in Tokyo, Japan. Suntory Beverage & Food Limited is a subsidiary of Suntory Holdings Limited.