Boston Beer (NYSE:SAM) and Spirits Capital (OTCMKTS:SSCC) Financial Survey

Boston Beer (NYSE:SAM) and Spirits Capital (OTCMKTS:SSCC) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

81.1% of Boston Beer shares are held by institutional investors. 26.1% of Boston Beer shares are held by company insiders. Comparatively, 29.8% of Spirits Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boston Beer	4.38%	12.29%	8.93%
Spirits Capital	N/A	N/A	N/A

Risk & Volatility

Boston Beer has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Spirits Capital has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Boston Beer and Spirits Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Beer	2	10	1	0	1.92
Spirits Capital	0	0	0	0	0.00

Boston Beer currently has a consensus price target of $249.74, indicating a potential upside of 28.03%. Given Boston Beer’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Boston Beer is more favorable than Spirits Capital.

Valuation & Earnings

This table compares Boston Beer and Spirits Capital”s gross 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	0.97	$59.69 million	$8.48	23.00
Spirits Capital	N/A	N/A	-$5.59 million	($0.07)	-31.71

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

Summary

Boston Beer beats Spirits Capital on 12 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 Spirits Capital

Spirits Cap Corp. operates a financial technology platform. Its platform provides secured purchase of American whiskey while maturing. The company was incorporated in 1995 and is based in Newport Beach, California.