Financial Review: New Age Beverages (NBEV) and Craft Brew Alliance (BREW)

New Age Beverages (NASDAQ: NBEV) and Craft Brew Alliance (NASDAQ:BREW) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Institutional & Insider Ownership

11.9% of New Age Beverages shares are held by institutional investors. Comparatively, 35.3% of Craft Brew Alliance shares are held by institutional investors. 48.6% of New Age Beverages shares are held by company insiders. Comparatively, 3.9% of Craft Brew Alliance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for New Age Beverages and Craft Brew Alliance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Age Beverages 0 0 3 0 3.00
Craft Brew Alliance 0 3 2 0 2.40

New Age Beverages currently has a consensus price target of $6.25, suggesting a potential upside of 255.11%. Craft Brew Alliance has a consensus price target of $20.20, suggesting a potential upside of 4.12%. Given New Age Beverages’ stronger consensus rating and higher probable upside, research analysts plainly believe New Age Beverages is more favorable than Craft Brew Alliance.

Volatility and Risk

New Age Beverages has a beta of 4.9, suggesting that its stock price is 390% more volatile than the S&P 500. Comparatively, Craft Brew Alliance has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares New Age Beverages and Craft Brew Alliance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Age Beverages $52.18 million 1.31 -$3.53 million N/A N/A
Craft Brew Alliance $207.46 million 1.81 $9.52 million $0.14 138.57

Craft Brew Alliance has higher revenue and earnings than New Age Beverages.

Profitability

This table compares New Age Beverages and Craft Brew Alliance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Age Beverages -10.35% -10.28% -8.04%
Craft Brew Alliance 5.38% 3.62% 2.23%

Summary

Craft Brew Alliance beats New Age Beverages on 7 of the 12 factors compared between the two stocks.

New Age Beverages Company Profile

New Age Beverages Corporation, a healthy functional beverage company, engages in the development, marketing, sales, and distribution of beverages. It offers ready to drink tea, kombucha, energy drinks, and functional waters under XingTea, XingEnergy, Aspen Pure, and Bucha Live Kombucha brand names. The company offers its products directly, as well as through store delivery distribution systems in the United States and internationally. New Age Beverages Corporation is headquartered in Denver, Colorado.

Craft Brew Alliance Company Profile

Craft Brew Alliance, Inc. brews and sells craft beers and ciders in the United States and internationally. It operates through two segments, Beer Related Operations and Brewpubs Operations. It offers beers under the Kona, Widmer Brothers, Redhook, and Omission brands; and ciders under the Square Mile brand name. The company sells its beers directly to consumers in draft, cans, and bottles at restaurants, bars, and liquor stores; and in cans and bottles at supermarkets, warehouse clubs, convenience stores, and drug stores, as well as directly to consumers at its brewpubs and breweries. It also operates five brewpubs, as well as sells apparel and other merchandise at these pubs. The company was founded in 1981 and is headquartered in Portland, Oregon.

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