Head-To-Head Review: Anheuser-Busch InBev SA/NV (BUD) vs. Its Peers

Anheuser-Busch InBev SA/NV (NYSE:BUD) is one of 137 publicly-traded companies in the “Beverages” industry, but how does it compare to its competitors? We will compare Anheuser-Busch InBev SA/NV to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Dividends

Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.7%. Anheuser-Busch InBev SA/NV pays out 28.2% of its earnings in the form of a dividend. As a group, “Beverages” companies pay a dividend yield of 2.9% and pay out 48.2% of their earnings in the form of a dividend.

Profitability

This table compares Anheuser-Busch InBev SA/NV and its competitors’ 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%
Anheuser-Busch InBev SA/NV Competitors	-8.64%	-16.03%	0.21%

Earnings & Valuation

This table compares Anheuser-Busch InBev SA/NV and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Anheuser-Busch InBev SA/NV	$59.32 billion	$6.84 billion	17.00
Anheuser-Busch InBev SA/NV Competitors	$8.49 billion	$869.16 million	6.10

Anheuser-Busch InBev SA/NV has higher revenue and earnings than its competitors. Anheuser-Busch InBev SA/NV is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. Comparatively, 36.3% of shares of all “Beverages” companies are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are held by company insiders. Comparatively, 19.4% of shares of all “Beverages” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Anheuser-Busch InBev SA/NV and its competitors, 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
Anheuser-Busch InBev SA/NV Competitors	1285	4339	5787	231	2.43

Anheuser-Busch InBev SA/NV currently has a consensus price target of $87.83, indicating a potential upside of 3.33%. As a group, “Beverages” companies have a potential upside of 9.40%. Given Anheuser-Busch InBev SA/NV’s competitors higher probable upside, analysts clearly believe Anheuser-Busch InBev SA/NV has less favorable growth aspects than its competitors.

Risk & Volatility

Anheuser-Busch InBev SA/NV has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Anheuser-Busch InBev SA/NV’s competitors have a beta of -0.24, meaning that their average stock price is 124% less volatile than the S&P 500.

Summary

Anheuser-Busch InBev SA/NV beats its competitors on 10 of the 15 factors compared.

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.