Critical Analysis: Innovation Beverage Group (NASDAQ:IBG) and Boston Beer (NYSE:SAM)

Boston Beer (NYSE:SAM) and Innovation Beverage Group (NASDAQ:IBG) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Valuation & Earnings

This table compares Boston Beer and Innovation Beverage Group”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	$2.14 billion	1.13	$59.69 million	$7.09	30.56
Innovation Beverage Group	N/A	N/A	N/A	N/A	N/A

Boston Beer has higher revenue and earnings than Innovation Beverage Group.

Analyst Ratings

This is a summary of current ratings and recommmendations for Boston Beer and Innovation Beverage Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Beer	1	10	2	0	2.08
Innovation Beverage Group	0	0	1	0	3.00

Boston Beer presently has a consensus price target of $258.09, indicating a potential upside of 19.12%. Given Boston Beer’s higher possible upside, equities research analysts clearly believe Boston Beer is more favorable than Innovation Beverage Group.

Profitability

This table compares Boston Beer and Innovation Beverage Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Beer	3.65%	15.15%	11.02%
Innovation Beverage Group	N/A	N/A	N/A

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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Boston Beer beats Innovation Beverage Group on 8 of the 9 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 Innovation Beverage Group

Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.