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 investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Risk and Volatility
Boston Beer Company, Inc. (The) has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, New Age Beverage Corporation has a beta of 4.74, suggesting that its share price is 374% more volatile than the S&P 500.
Earnings and Valuation
This table compares Boston Beer Company, Inc. (The) and New Age Beverage Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Boston Beer Company, Inc. (The)||$882.43 million||2.07||$185.88 million||$7.03||21.71|
|New Age Beverage Corporation||$49.92 million||2.57||$491,780.00||N/A||N/A|
Boston Beer Company, Inc. (The) has higher revenue and earnings than New Age Beverage Corporation.
Institutional and Insider Ownership
70.7% of Boston Beer Company, Inc. (The) shares are owned by institutional investors. Comparatively, 14.0% of New Age Beverage Corporation shares are owned by institutional investors. 31.3% of Boston Beer Company, Inc. (The) shares are owned by company insiders. Comparatively, 48.6% of New Age Beverage Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
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||0.87%||1.81%||1.06%|
This is a summary of recent recommendations and price targets for Boston Beer Company, Inc. (The) and New Age Beverage Corporation, as provided 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) presently has a consensus price target of $137.43, indicating a potential downside of 9.94%. New Age Beverage Corporation has a consensus price target of $7.08, indicating a potential upside of 89.90%. Given New Age Beverage Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe New Age Beverage Corporation is more favorable than Boston Beer Company, Inc. (The).
About Boston Beer Company, Inc. (The)
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.
About New Age Beverage Corporation
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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