Reviewing Boston Beer (NYSE:SAM) and Choose Rain (OTCMKTS:RSAU)

Boston Beer (NYSE:SAM) and Choose Rain (OTCMKTS:RSAU) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk & Volatility

Boston Beer has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Choose Rain has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Insider and Institutional Ownership

81.1% of Boston Beer shares are owned by institutional investors. 26.1% of Boston Beer shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Boston Beer and Choose Rain”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Beer	$2.04 billion	1.05	$59.69 million	$6.03	31.77
Choose Rain	N/A	N/A	-$670,000.00	($0.03)	-9.50

Boston Beer has higher revenue and earnings than Choose Rain. Choose Rain is trading at a lower price-to-earnings ratio than Boston Beer, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Boston Beer and Choose Rain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Beer	3.30%	13.81%	10.07%
Choose Rain	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for Boston Beer and Choose Rain, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Beer	1	9	2	0	2.08
Choose Rain	0	0	0	0	0.00

Boston Beer currently has a consensus target price of $272.01, suggesting a potential upside of 41.98%. Given Boston Beer’s stronger consensus rating and higher possible upside, research analysts plainly believe Boston Beer is more favorable than Choose Rain.

Summary

Boston Beer beats Choose Rain on 13 of the 13 factors compared between the two stocks.

About Boston Beer

The Boston Beer Company, Inc produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, flavored malt beverages, and hard seltzers under the Samuel Adams, Twisted Tea, Truly, Angry Orchard, Dogfish Head, Angel City, and Coney Island brand names. The company markets and sells its products to a network wholesaler in the United States, as well as wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other e-commerce retail outlets. It sells its products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.

About Choose Rain

Choose Rain, Inc. collects, purifies, and filters rainwater into bottled drinking water. It serves its water to art shows, business meetings, college reunions, conventions, family reunions, festivals, golf tournaments, high school reunions, parades, parties/weddings, and sporting events. The company offers products through stores, small boutique locations, and its online store. The company was incorporated in 1998 and is based in Ormond Beach, Florida.