Analyzing Kirin (OTCMKTS:KNBWY) and Anheuser-Busch InBev SA/NV (NYSE:BUD)

Anheuser-Busch InBev SA/NV (NYSE:BUD) and Kirin (OTCMKTS:KNBWY) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Dividends

Anheuser-Busch InBev SA/NV pays an annual dividend of $0.89 per share and has a dividend yield of 1.0%. Kirin pays an annual dividend of $0.35 per share and has a dividend yield of 1.7%. Anheuser-Busch InBev SA/NV pays out 17.8% of its earnings in the form of a dividend. Kirin pays out 22.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Anheuser-Busch InBev SA/NV has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Kirin has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Valuation & Earnings

This table compares Anheuser-Busch InBev SA/NV and Kirin”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anheuser-Busch InBev SA/NV	$63.99 billion	2.69	$6.84 billion	$5.00	17.04
Kirin	$16.28 billion	1.00	$988.53 million	$1.57	12.76

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Kirin. Kirin is trading at a lower price-to-earnings ratio than Anheuser-Busch InBev SA/NV, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Anheuser-Busch InBev SA/NV and Kirin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anheuser-Busch InBev SA/NV	0	4	12	0	2.75
Kirin	0	1	0	0	2.00

Anheuser-Busch InBev SA/NV currently has a consensus price target of $87.83, indicating a potential upside of 3.09%. Given Anheuser-Busch InBev SA/NV’s stronger consensus rating and higher possible upside, analysts clearly believe Anheuser-Busch InBev SA/NV is more favorable than Kirin.

Profitability

This table compares Anheuser-Busch InBev SA/NV and Kirin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anheuser-Busch InBev SA/NV	15.42%	17.28%	7.86%
Kirin	7.79%	12.22%	5.70%

Institutional and Insider Ownership

5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Anheuser-Busch InBev SA/NV beats Kirin on 15 of the 16 factors compared between the two stocks.

About Anheuser-Busch InBev SA/NV

Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands. The company operates in North America, Middle America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1366 and is headquartered in Leuven, Belgium.

About Kirin

Kirin Holdings Company, Limited engages in food and beverages, pharmaceuticals, and health science businesses. The company's products include beer, wine, whiskey, spirits, soft drinks, dairy products, and other products. It also produces and sells pharmaceutical products, biochemical products, and other products. In addition, the company engages in the factories and theme park businesses; management and operation of a chain of Kirin City beer pubs; and manufacture and sale of amino acids and nucleic acids for pharmaceutical and industrial use bulk pharmaceuticals, as well as margarine, jams, and honey. Further, it is involved in the manufacture and sale of Coca-Cola products and other soft drinks; manufacture of Four Roses bourbon; transport logistic services; shared services, such as accounting, human resources, and real estate; Internal information system development; sales of feed; insurance agent; and sales of the supplements; research, development, manufacture, and sale of cosmetics and health foods. The company was formerly known as Kirin Brewery Company, Limited and changed its name to Kirin Holdings Company, Limited in July 2007. Kirin Holdings Company, Limited was founded in 1885 and is headquartered in Tokyo, Japan.