Critical Analysis: Compania Cervecerias Unidas (CCU) and San Miguel (SMGBY)

Compania Cervecerias Unidas (NYSE:CCU) and San Miguel (OTCMKTS:SMGBY) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

14.1% of Compania Cervecerias Unidas shares are owned by institutional investors. 8.4% of Compania Cervecerias Unidas shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Compania Cervecerias Unidas pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. San Miguel pays an annual dividend of $0.18 per share and has a dividend yield of 0.6%. Compania Cervecerias Unidas pays out 50.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Compania Cervecerias Unidas and San Miguel, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Compania Cervecerias Unidas 0 2 1 0 2.33
San Miguel 0 0 0 0 N/A

Profitability

This table compares Compania Cervecerias Unidas and San Miguel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Compania Cervecerias Unidas 17.04% 24.33% 15.06%
San Miguel 3.39% 6.39% 2.07%

Risk and Volatility

Compania Cervecerias Unidas has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, San Miguel has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Valuation and Earnings

This table compares Compania Cervecerias Unidas and San Miguel’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Compania Cervecerias Unidas $2.68 billion 1.76 $194.41 million $1.11 22.99
San Miguel $16.23 billion 0.46 $558.85 million N/A N/A

San Miguel has higher revenue and earnings than Compania Cervecerias Unidas.

Summary

Compania Cervecerias Unidas beats San Miguel on 10 of the 13 factors compared between the two stocks.

Compania Cervecerias Unidas Company Profile

Compañía Cervecerías Unidas S.A. operates as a beverage company principally in Chile, Argentina, Uruguay, Paraguay, Colombia, and Bolivia. The company operates through Chile, International Business, and Wine segments. It produces and sells alcoholic and non-alcoholic beer under proprietary and licensed brands, as well as distributes Pernod Ricard products in non-supermarket retail stores. The company also produces and sells non-alcoholic beverages, including carbonated soft drinks, nectars and juices, sports and energy drinks, and ice tea, as well as mineral, purified, and flavored bottled water. In addition, it manufactures returnable and non-returnable glass bottles. Further, the company is involved in the production and distribution of wine, cider, and spirits. The company serves small and medium-sized retail outlets; retail establishments, such as restaurants, hotels, and bars; wholesalers; and supermarket chains. Compañía Cervecerías Unidas S.A. also exports its products to Europe, Latin America, the United States, Canada, Asia, Oceania, and internationally. The company was founded in 1850 and is based in Santiago, Chile. Compañía Cervecerías Unidas S.A. operates as a subsidiary of Inversiones y Rentas S.A.

San Miguel Company Profile

San Miguel Corporation engages in beverages, food, packaging, energy, fuel and oil, infrastructure, and real estate property management and development businesses in the Philippines and internationally. The company's Beverage segment produces and markets alcoholic and non-alcoholic beverages. Its Food segment is involved in feeds production; poultry and livestock farming; the processing and sale of poultry and meat products; processing and marketing refrigerated processed and canned meat products; manufacturing and marketing flour, flour mixes, bakery ingredients, butter, margarine, cheese, milk, ice cream, jelly snacks and desserts, specialty oils, salad aids, snacks, and condiments; importing and marketing coffee and coffee-related products; and grain terminal handling. The company's Packaging segment produces and markets packaging products, such as glass containers and molds, polyethylene terephthalate (PET) bottles and preforms, PET recycling, plastic and metal closures, corrugated cartons, woven polypropylene, Kraft sacks and paperboards, pallets, flexible packaging, two-piece aluminum cans, woven products, industrial laminates, and radiant barriers, as well as plastic crates, floorings, films, trays, pails, and tubs. This segment also engages in the crate and plastic pallet leasing, PET bottle filling graphics design, packaging research and testing, packaging development and consultation, and contract packaging and trading activities. Its Energy segment generates, sells, retails, and distributes power. The company's Fuel and Oil segment refines and markets petroleum products. Its Infrastructure segment constructs and develops various infrastructure projects, such as airports, roads, highways, toll roads, freeways, skyways, flyovers, viaducts, interchanges, and mass rail transit systems. The company was founded in 1890 and is headquartered in Mandaluyong City, the Philippines. San Miguel Corporation is a subsidiary of Top Frontier Investment Holdings, Inc.

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