Reviewing Pernod Ricard (OTCMKTS:PRNDY) & Anheuser-Busch InBev SA/NV (NYSE:BUD)

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

Earnings and Valuation

This table compares Anheuser-Busch InBev SA/NV and Pernod Ricard”s gross 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	$59.32 billion	2.69	$6.84 billion	$4.72	16.73
Pernod Ricard	$11.93 billion	1.68	$1.77 billion	N/A	N/A

Anheuser-Busch InBev SA/NV has higher revenue and earnings than Pernod Ricard.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Anheuser-Busch InBev SA/NV	14.90%	16.42%	7.47%
Pernod Ricard	N/A	N/A	N/A

Volatility and Risk

Anheuser-Busch InBev SA/NV has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Pernod Ricard has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Dividends

Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.8%. Pernod Ricard pays an annual dividend of $0.75 per share and has a dividend yield of 4.7%. Anheuser-Busch InBev SA/NV pays out 29.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Anheuser-Busch InBev SA/NV and Pernod Ricard, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anheuser-Busch InBev SA/NV	0	6	11	0	2.65
Pernod Ricard	2	0	0	1	2.00

Anheuser-Busch InBev SA/NV presently has a consensus price target of $91.08, suggesting a potential upside of 15.35%. 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 Pernod Ricard.

Insider & Institutional 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 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.

Summary

Anheuser-Busch InBev SA/NV beats Pernod Ricard on 12 of the 15 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 Pernod Ricard

Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands 100 Pipers, Aberlour, Absolut, Absolut Elyx, Altos, ARARAT, Augier, Avion, Ballantine's, Becherovka, Beefeater, Blenders Pride, Brancott Estate, Campo Viejo, Ceder's, Chivas, Church Road, Clan Campbell, Del Maguey, George Wyndham, Green Spot, Havana Club, Imperial, Imperial Blue, Italicus, J.P. Wiser's, Jacob's Creek, Jameson, Jefferson's, Kahlúa, Kenwood, KI NO BI, Lillet, Long John, L'Orbe, Lot No. 40, Malfy, Malibu, Martell, Method & Madness, Midleton Very Rare, Minttu, Monkey 47, Mumm, Olmeca, Ostoya, Passport Scotch, Pastis 51, Pernod, Perrier-Jouët, Plymouth Gin, Powers, Rabbit Hole, Ramazzotti, Redbreast, Ricard, Royal Salute, Royal Stag, Scapa, Seagram's Gin, Secret Speyside, Smooth Ambler, Something Special, St Hugo, Stoneleigh, Suze, The Glenlivet, TX, Wyborowa, and Ysios. It also provides non-alcoholic beverages under the brands Ceder's, Suze Tonic 0%, Cinzano Spritz 0%, Pacific, Campo Viejo Sparkling 0%, and Jacob's Creek Unvined. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.