Boston Beer Company, Inc. (The) (NYSE: SAM) and New Age Beverage Corporation (NASDAQ:NBEV) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
This is a summary of recent ratings for Boston Beer Company, Inc. (The) and New Age Beverage Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boston Beer Company, Inc. (The)||4||3||1||0||1.63|
|New Age Beverage Corporation||0||0||3||0||3.00|
Boston Beer Company, Inc. (The) currently has a consensus target price of $141.29, indicating a potential downside of 4.54%. New Age Beverage Corporation has a consensus target price of $7.08, indicating a potential upside of 77.08%. Given New Age Beverage Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe New Age Beverage Corporation is more favorable than Boston Beer Company, Inc. (The).
This table compares Boston Beer Company, Inc. (The) and New Age Beverage Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boston Beer Company, Inc. (The)||9.65%||20.19%||14.52%|
|New Age Beverage Corporation||0.86%||1.78%||1.04%|
Institutional & Insider Ownership
71.6% of Boston Beer Company, Inc. (The) shares are held by institutional investors. Comparatively, 12.4% of New Age Beverage Corporation shares are held by institutional investors. 31.3% of Boston Beer Company, Inc. (The) shares are held by company insiders. Comparatively, 48.6% of New Age Beverage Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Boston Beer Company, Inc. (The) and New Age Beverage Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Boston Beer Company, Inc. (The)||$882.43 million||2.01||$185.88 million||$7.03||21.05|
|New Age Beverage Corporation||$49.92 million||2.51||$491,780.00||N/A||N/A|
Boston Beer Company, Inc. (The) has higher revenue and earnings than New Age Beverage Corporation.
Risk & Volatility
Boston Beer Company, Inc. (The) has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, New Age Beverage Corporation has a beta of 4.68, meaning that its share price is 368% more volatile than the S&P 500.
Boston Beer Company, Inc. (The) Company Profile
The Boston Beer Company, Inc. is a craft brewer in the United States. The Company is engaged in the business of producing and selling alcohol beverages primarily in the domestic market and in selected international markets. The Company operates through two segments: Boston Beer Company segment, and A&S Brewing Collaborative segment. The Boston Beer Company segment comprises of the Company’s Samuel Adams, Twisted Tea, Angry Orchard and Truly Spiked & Sparkling brands. The A&S Brewing Collaborative segment comprises of The Traveler Beer Company, Coney Island Brewing Company, Angel City Brewing Company and Concrete Beach Brewing Company. Both segments sell low alcohol beverages. The Company produces malt beverages and hard cider at the Company-owned breweries and under contract arrangements at other brewery locations. As of December 31, 2016, the Company sold its products to a network of approximately 350 wholesalers in the United States and to a network of distributors.
New Age Beverage Corporation Company Profile
The New Age Beverage Corporation, formerly Bucha, Inc., is a healthy functional beverage company. The Company is the owner of XingTea, XingEnergy, Aspen Pure and the Bucha Live Kombucha brands. The Company’s bucha Live Kombucha is a gluten free, organic certified, sparkling kombucha tea and is distributed in health and grocery chains across North America. The Company offers its bucha Live Kombucha products in approximately 16-ounce bottle. The Company offers XingTea in approximately 13 flavors. Its product, XINGjuice, is a natural juice drink, made with cane sugar and real fruit juice. Its product, XingEnergy is a naturally flavored cane sugar product. The Company’s product, Aspen Pure, is bottled water packaged in approximately 24-ounce, half-liter and one-liter bottles. The Company offers products in approximately 46 states within the United States and in over 10 countries internationally across all channels through direct and store door distribution systems.
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