Comparing Keurig Dr Pepper (NASDAQ:KDP) and Anheuser-Busch InBev SA/NV (NYSE:BUD)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Anheuser-Busch InBev SA/NV and Keurig Dr Pepper, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75
Keurig Dr Pepper	0	9	10	0	2.53

Anheuser-Busch InBev SA/NV currently has a consensus target price of $87.83, indicating a potential upside of 4.72%. Keurig Dr Pepper has a consensus target price of $37.29, indicating a potential upside of 1.81%. Given Anheuser-Busch InBev SA/NV’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Anheuser-Busch InBev SA/NV is more favorable than Keurig Dr Pepper.

Risk & Volatility

Anheuser-Busch InBev SA/NV has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Anheuser-Busch InBev SA/NV	15.42%	17.28%	7.86%
Keurig Dr Pepper	7.10%	10.80%	4.36%

Earnings & Valuation

This table compares Anheuser-Busch InBev SA/NV and Keurig Dr Pepper”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anheuser-Busch InBev SA/NV	$59.32 billion	2.85	$6.84 billion	$5.00	16.77
Keurig Dr Pepper	$16.60 billion	3.00	$2.08 billion	$1.09	33.61

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

Insider and Institutional Ownership

5.5% of Anheuser-Busch InBev SA/NV shares are owned by institutional investors. Comparatively, 94.0% of Keurig Dr Pepper shares are owned by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are owned by insiders. Comparatively, 0.3% of Keurig Dr Pepper shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.7%. Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Anheuser-Busch InBev SA/NV pays out 28.2% of its earnings in the form of a dividend. Keurig Dr Pepper pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Keurig Dr Pepper has increased its dividend for 4 consecutive years. Keurig Dr Pepper is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Anheuser-Busch InBev SA/NV beats Keurig Dr Pepper on 12 of the 17 factors compared between the two stocks.

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.

About Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.