Head-To-Head Comparison: Ambev (NYSE:ABEV) versus Big Rock Brewery (OTCMKTS:BRBMF)

Ambev (NYSE:ABEV) and Big Rock Brewery (OTCMKTS:BRBMF) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Profitability

This table compares Ambev and Big Rock Brewery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambev	17.90%	15.81%	10.16%
Big Rock Brewery	-17.71%	-43.98%	-21.50%

Risk and Volatility

Ambev has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Big Rock Brewery has a beta of -1.03, meaning that its stock price is 203% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ambev and Big Rock Brewery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambev	$16.59 billion	2.65	$2.68 billion	$0.18	15.47
Big Rock Brewery	$31.65 million	0.48	-$9.83 million	($1.00)	-0.62

Ambev has higher revenue and earnings than Big Rock Brewery. Big Rock Brewery 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. 38.4% of Big Rock Brewery shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Ambev and Big Rock Brewery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambev	1	7	0	0	1.88
Big Rock Brewery	0	0	0	0	0.00

Ambev currently has a consensus price target of $2.53, indicating a potential downside of 9.28%. Given Ambev’s stronger consensus rating and higher probable upside, research analysts plainly believe Ambev is more favorable than Big Rock Brewery.

Summary

Ambev beats Big Rock Brewery on 12 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, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, 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, Bud 66, 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!, Pepsi Black, Lipton Iced Tea, Fusion, 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. is a subsidiary of Interbrew International B.V.

About Big Rock Brewery

Big Rock Brewery Inc. produces, markets, and distributes craft beers, ciders, and ready-to-drink beverages primarily in Canada. The company offers a selection of beer, ciders, and ready-to-drink beverages under the Big Rock, Tree Brewing, Rock Creek Cider, Dukes Cider, AGD, Shaftbury, Bow Valley, White Peaks, and Cottage Springs brands. It also provides apparel and accessories, including jackets, headwear, sweaters, glassware, belt buckles, and coolers. The company sells its products to provincial liquor boards, grocery stores, on-premise and contract manufacturing customers; and through premises owned and/or operated by the Corporation, Big Rock's retail location and online through various e-commerce platforms. website, and third-party delivery services. Big Rock Brewery Inc. was founded in 1985 and is headquartered in Calgary, Canada.