Compania Cervecerias Unidas (NYSE:CCU) & Kirin (OTCMKTS:KNBWY) Critical Review

Kirin (OTCMKTS:KNBWY) and Compania Cervecerias Unidas (NYSE:CCU) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

This table compares Kirin and Compania Cervecerias Unidas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kirin	7.79%	12.22%	5.70%
Compania Cervecerias Unidas	3.60%	6.68%	3.01%

Volatility & Risk

Kirin has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Compania Cervecerias Unidas has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Insider & Institutional Ownership

24.1% of Compania Cervecerias Unidas shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Kirin and Compania Cervecerias Unidas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kirin	$16.28 billion	0.93	$988.53 million	$1.57	11.92
Compania Cervecerias Unidas	$3.06 billion	0.64	$128.87 million	$0.62	17.16

Kirin has higher revenue and earnings than Compania Cervecerias Unidas. Kirin is trading at a lower price-to-earnings ratio than Compania Cervecerias Unidas, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Kirin and Compania Cervecerias Unidas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kirin	0	1	0	0	2.00
Compania Cervecerias Unidas	3	1	0	0	1.25

Compania Cervecerias Unidas has a consensus price target of $11.50, suggesting a potential upside of 8.06%. Given Compania Cervecerias Unidas’ higher probable upside, analysts plainly believe Compania Cervecerias Unidas is more favorable than Kirin.

Dividends

Kirin pays an annual dividend of $0.35 per share and has a dividend yield of 1.9%. Compania Cervecerias Unidas pays an annual dividend of $0.19 per share and has a dividend yield of 1.8%. Kirin pays out 22.3% of its earnings in the form of a dividend. Compania Cervecerias Unidas pays out 30.6% 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. Kirin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kirin beats Compania Cervecerias Unidas on 10 of the 15 factors compared between the two stocks.

About Kirin

Kirin Holdings Company, Limited is a Japanese company with businesses in beverages, pharmaceuticals and health science. Its beverage operations include beer, wine, spirits, soft drinks and other nonalcoholic products, with brands sold in Japan and international markets. The company traces its roots to the Japan Brewery Company, established in 1885, and adopted the Kirin Brewery name in 1907. Today, its pharmaceutical business includes Kyowa Kirin, which develops and sells medicines, while its health science activities include products such as supplements and functional foods.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas S.A. (CCU) is a Chilean beverage company founded in 1902. It produces, markets and distributes a range of alcoholic and non-alcoholic beverages, including beer, soft drinks, bottled water, juices, energy drinks, wine and spirits. CCU sells products under its own brands and through partnerships with international beverage companies. Its beer portfolio includes brands such as Cristal and Escudo, alongside beers produced or distributed under license. The company operates across several South American markets, including Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay.