Critical Analysis: Anheuser-Busch InBev SA/NV (NYSE:BUD) vs. Kirin (OTCMKTS:KNBWY)

Kirin (OTCMKTS:KNBWY) and Anheuser-Busch InBev SA/NV (NYSE:BUD) are both large-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Earnings and Valuation

This table compares Kirin and Anheuser-Busch InBev SA/NV”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kirin	$16.28 billion	0.91	$988.53 million	$1.57	11.69
Anheuser-Busch InBev SA/NV	$59.32 billion	2.73	$6.84 billion	$5.00	16.06

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Kirin. Kirin is trading at a lower price-to-earnings ratio than Anheuser-Busch InBev SA/NV, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kirin and Anheuser-Busch InBev SA/NV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kirin	7.79%	12.22%	5.70%
Anheuser-Busch InBev SA/NV	15.42%	12.96%	5.90%

Volatility & Risk

Kirin has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Dividends

Kirin pays an annual dividend of $0.35 per share and has a dividend yield of 1.9%. Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.8%. Kirin pays out 22.3% of its earnings in the form of a dividend. Anheuser-Busch InBev SA/NV pays out 28.2% 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.

Analyst Recommendations

This is a breakdown of recent ratings for Kirin and Anheuser-Busch InBev SA/NV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kirin	0	1	0	0	2.00
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75

Anheuser-Busch InBev SA/NV has a consensus target price of $87.83, indicating a potential upside of 9.38%. Given Anheuser-Busch InBev SA/NV’s stronger consensus rating and higher possible upside, analysts plainly believe Anheuser-Busch InBev SA/NV is more favorable than Kirin.

Insider & Institutional Ownership

5.5% of Anheuser-Busch InBev SA/NV shares are owned by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Anheuser-Busch InBev SA/NV beats Kirin on 14 of the 16 factors compared between the two stocks.

About Kirin

Kirin Holdings Company, Limited engages in food and beverages, pharmaceuticals, and health science businesses. The company's products include beer, wine, whiskey, spirits, soft drinks, dairy products, and other products. It also produces and sells pharmaceutical products, biochemical products, and other products. In addition, the company engages in the factories and theme park businesses; management and operation of a chain of Kirin City beer pubs; and manufacture and sale of amino acids and nucleic acids for pharmaceutical and industrial use bulk pharmaceuticals, as well as margarine, jams, and honey. Further, it is involved in the manufacture and sale of Coca-Cola products and other soft drinks; manufacture of Four Roses bourbon; transport logistic services; shared services, such as accounting, human resources, and real estate; Internal information system development; sales of feed; insurance agent; and sales of the supplements; research, development, manufacture, and sale of cosmetics and health foods. The company was formerly known as Kirin Brewery Company, Limited and changed its name to Kirin Holdings Company, Limited in July 2007. Kirin Holdings Company, Limited was founded in 1885 and is headquartered in Tokyo, Japan.

About Anheuser-Busch InBev SA/NV

Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands. The company operates in North America, Middle America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1366 and is headquartered in Leuven, Belgium.