New Age Beverages (NBEV) versus Heineken (HEINY) Critical Review

New Age Beverages (NASDAQ:NBEV) and Heineken (OTCMKTS:HEINY) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Risk & Volatility

New Age Beverages has a beta of 3.21, meaning that its stock price is 221% more volatile than the S&P 500. Comparatively, Heineken has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for New Age Beverages and Heineken, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Age Beverages 1 1 1 0 2.00
Heineken 1 2 0 0 1.67

New Age Beverages presently has a consensus price target of $7.00, suggesting a potential upside of 13.27%. Given New Age Beverages’ stronger consensus rating and higher possible upside, analysts clearly believe New Age Beverages is more favorable than Heineken.

Dividends

Heineken pays an annual dividend of $0.54 per share and has a dividend yield of 1.2%. New Age Beverages does not pay a dividend. Heineken pays out 24.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares New Age Beverages and Heineken’s 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 8.63 -$3.53 million N/A N/A
Heineken $24.73 billion 2.07 $2.19 billion $2.23 19.96

Heineken has higher revenue and earnings than New Age Beverages.

Institutional & Insider Ownership

6.4% of New Age Beverages shares are owned by institutional investors. Comparatively, 0.2% of Heineken shares are owned by institutional investors. 20.0% of New Age Beverages shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
New Age Beverages -29.08% -23.49% -19.08%
Heineken N/A N/A N/A

Summary

New Age Beverages beats Heineken on 8 of the 14 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. The company offers ready to drink (RTD) tea, RTD coffee, kombucha, energy drinks, relaxation drinks, coconut waters, functional waters, and rehydration beverages, as well as functional medical beverages. It provides its products under the Búcha Live Kombucha, XingTea, XingEnergy, Marley One Drop, Marley Mellow Mood, Marley Mate, Marley Cold Brew, Coco-Libre, PediaAde, and Aspen Pure PH and Aspen Pure Probiotic Water brands, as well as the Bio-Shield and ‘n-Hanced brands. The company sells its products across 50 states in the United States; and approximately 10 countries internationally through direct and store door distribution systems. New Age Beverages Corporation is headquartered in Denver, Colorado.

Heineken Company Profile

Heineken N.V. engages in brewing and selling beer and cider. The company operates through Africa, Middle East & Eastern Europe; Americas; Asia Pacific; and Europe segments. It offers beer, cider, soft drinks, and other beverages. The company offers its beers under the Heineken, Amstel, Desperados, Sol, Tiger, Tecate, Red Stripe, Krušovice, Birra Morett, Affligem, and Lagunitas brands, as well as under various other regional and local brands; and cider under the Strongbow Apple Ciders, Orchard Thieves, Stassen, Bulmers, Old Mout, and Blind Pig brands. It offers its products to retailers, bars, and restaurants through distributors. The company was founded in 1864 and is headquartered in Amsterdam, the Netherlands. Heineken N.V. is a subsidiary of Heineken Holding N.V.

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