Ambev (NYSE:ABEV – Get Free Report) and Westrock Coffee (NASDAQ:WEST – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Profitability
This table compares Ambev and Westrock Coffee’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Ambev | 18.19% | 17.60% | 11.25% |
Westrock Coffee | -4.05% | -41.02% | -2.83% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Ambev and Westrock Coffee, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Ambev | 0 | 4 | 3 | 0 | 2.43 |
Westrock Coffee | 0 | 0 | 3 | 0 | 3.00 |
Volatility & Risk
Ambev has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Westrock Coffee has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Valuation and Earnings
This table compares Ambev and Westrock Coffee’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Ambev | $15.97 billion | 2.27 | $2.90 billion | $0.18 | 12.81 |
Westrock Coffee | $864.71 million | 1.03 | -$34.58 million | ($0.56) | -18.04 |
Ambev has higher revenue and earnings than Westrock Coffee. Westrock Coffee is trading at a lower price-to-earnings ratio than Ambev, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
8.1% of Ambev shares are owned by institutional investors. Comparatively, 45.1% of Westrock Coffee shares are owned by institutional investors. 42.1% of Westrock Coffee shares are owned by 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.
Summary
Ambev beats Westrock Coffee on 10 of the 13 factors compared between the two stocks.
About Ambev
Ambev S.A., through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, other non-alcoholic beverages, malt, and food products. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe and Hoegaarden, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith's, and Kokanee brands. The company also provides carbonated soft drinks, bottled water, isotonic beverages, energy drinks, coconut water, powdered and natural juices, and ready-to-drink teas under the Guaraná Antarctica, Gatorade, H2OH!, Lipton Iced Tea, Fusion, Do Bem, Pepsi-Cola, Canada Dry, Squirt, Red Rock, Red Bull, Seven Up, Nutrl, Bud Light Seltzer, Palm Bay, and Mike's brands. It offers its products through a network of third-party distributors and a direct distribution system. The company was founded in 1885 and is headquartered in São Paulo, Brazil. Ambev S.A. operates as a subsidiary of Interbrew International B.V.
About Westrock Coffee
Westrock Coffee Company, LLC operates as an integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States and internationally. It operates through two segments, Beverage Solutions, and Sustainable Sourcing & Traceability (SS&T). The Beverage Solutions segment provides various packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions for applications in cold brew and ready-to-drink offerings. The SS&T segment engages in delivery and settlement of forward sales contracts for green coffee. The company offers coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. Westrock Coffee Company, LLC was founded in 2009 and is headquartered in Little Rock, Arkansas.
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