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Category: Boston Beer Company (SAM) and Constellation Brands (STZ)
Date: 28 June 2020 Stock price of Boston Beer Company: $563.83 Stock price of Constellation Brands: $168.99 Battle of the brewers continued. If you have to pick between Boston Beer Company (SAM) or Constellation Brands (STZ) who should you pick? We compare the two brewers and their stock price over the last couple of years in order to determine who comes out on top and which one offers the best prospects for future growth.
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We therefore believe at their respective prices, the stock of Constellation Brands offers far better long term investment value than that of Boston Beer Company. Especially considering the strong stock performance of Boston Beer Company over the last three years. We do feel that Boston Beer Company's stock has run far ahead of its future earnings potential. "
More About Boston Beer Company
The Boston Beer Company, Inc. (NYSE: SAM) began in 1984 brewing Samuel Adams beer and the Samuel Adams brand is currently recognized as one of the largest and most respected craft beer brands. Our portfolio of brands also includes Angry Orchard Hard Cider, Twisted Tea, Truly Hard Seltzer, Wild Leaf Hard Tea and Tura Alcoholic Kombucha as well as other craft beer brands such as Angel City Brewery, Coney Island Brewing, and Concrete Beach Brewery. On July 3, 2019, the Company completed its previously reported Dogfish Head Brewery transaction. Dogfish Head has a proud history as a craft beer pioneer with a brand that is beloved by American consumers and highly respected by the industry.
Quick facts about Boston Beer Company (SAM)
Quick facts about Boston Beer Company (SAM)
- Boston Beer Company is listed on the New York Stock Exchange under share code ticker: SAM
- Owns Samuel Adams
- Owns Dogfish Head
- Owns Twisted Tea
- Sales for 2019 fiscal year: $1.249 billion
- 2 128 employees as at end December 2019
- Earnings per share of Boston Beer Company: $9.16
- Shares in issue: 11.908 million
- Number of stockholders: 8 477
- Number of barrels sold: 5 307
- Net revenue per barrel: $235.51
- Stockholders equity in Boston Beer Company: $735.636 million
- Stockholders equity per share: $61.78
More About Constellation Brands (STZ)
Constellation Brands (NYSE: STZ and STZ.B), a Fortune 500® company, is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy, and Canada. Constellation is the No. 3 beer company in the U.S. with high-end, iconic imported beer brands such as the Corona and Modelo brand families, and Pacifico. Its high-quality wine and spirits brands include the Robert Mondavi and The Prisoner Wine Company brand families, Kim Crawford, Ruffino, Meiomi, and SVEDKA Vodka. The company’s portfolio also includes a collection of highly-rated wine brands such as SIMI and Mount Veeder Winery, spirits brands High West Whiskey and Casa Noble Tequila, as well as new wine innovations such as Cooper & Thief and Spoken Barrel.
Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand building, our trade partners, the environment, our investors, and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Since its founding in 1945, Constellation’s ability to see, meet and stay ahead of shifting consumer preferences and trends across total beverage alcohol has fueled our success and made us one of the top growth contributors in beverage alcohol in the U.S. Main brands of Constellation include: Corona, Modelo and Casa Noble Tequila
Quick facts about Constellation Brands (STZ)
Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand building, our trade partners, the environment, our investors, and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Since its founding in 1945, Constellation’s ability to see, meet and stay ahead of shifting consumer preferences and trends across total beverage alcohol has fueled our success and made us one of the top growth contributors in beverage alcohol in the U.S. Main brands of Constellation include: Corona, Modelo and Casa Noble Tequila
Quick facts about Constellation Brands (STZ)
- Constellation Brands employees: 9,800 employees. Approximately 4,900 employees were in the U.S. and approximately 4,900 employees were outside of the U.S., primarily in Mexico
- Annual net sales in 2019: $8.116 billion
- Beer sales makes up 64.1% of the group's total sales
- Number 3 beer company in the U.S
- Total assets: $29.231 billion
- Stockholders equity in Constellation Brands: $12.83 billion
- Stockholders equity per share: $76.71
- Shares in issue: 167.249 million shares
- Diluted earnings per share for last full fiscal year: -$0.07
- PE ratio of Constellation Brands (based on 4th quarter 2020 earnings per share): 22.1
- Dividend declared during 2019 fiscal year: $2.96
- Dividend yield of Constellation Brands: 1.75%
Boston Beer Company (SAM) stock vs Constellation Brands (STZ)
The image below shows the stock price performance of Boston Beer Company (SAM) and Constellation Brands (STZ) over the last 3 years. While both these firms are breweries and own well known brands, the stock of Boston Beer Company (SAM) has easily outperformed that of Constellation Brands (STZ). Over the three year period looked at the stock of Boston Beer Company increased by 323.93% while the stock of Constellation Brands declined by -14.26% over the same time period. So if you had to pick a brewery to add to your portfolio we hope you picked Boston Beer Company and not Constellation Brands
So if one had to buy one of these two brewers now which one is the better buy? Does Constellation Brands provide a better buying opportunity due to its stock price declines compared to the sharp increase in the stock price of Boston Beer Company, or is the underlying fundamentals of Boston Beer Company just so much better than that of Constellation Brands?
One of our key metrics is the Price to stockholders equity per share ratio. When looking at this we find the following for both stocks:
Based on this metric Constellation Brands offers far more value than Boston Beer Company. Most firms tend to trade at a ratio of between 2 and 4 times. Boston is trading at well above the expected range and Constellation Brands is trading well within the expected range. The PE ratio of Constellation Brands is 22.1 compared to Boston Beer Company's PE ratio of 61.6
We therefore believe at their respective prices, the stock of Constellation Brands offers far better long term investment value than that of Boston Beer Company. Especially considering the strong stock performance of Boston Beer Company over the last three years. We do feel that Boston Beer Company's stock has run far ahead of its future earnings potential.
Therefore in the battle of the brewers if we have to pick between Boston Beer Company and Constellation Brands, we rate Constellation Brands as the Winner.
- Price/Stockholders equity per share for Boston Beer Company (SAM) : 9.1
- Price/Stockholders equity per share for Constellation Brands (STZ): 2.22
Based on this metric Constellation Brands offers far more value than Boston Beer Company. Most firms tend to trade at a ratio of between 2 and 4 times. Boston is trading at well above the expected range and Constellation Brands is trading well within the expected range. The PE ratio of Constellation Brands is 22.1 compared to Boston Beer Company's PE ratio of 61.6
We therefore believe at their respective prices, the stock of Constellation Brands offers far better long term investment value than that of Boston Beer Company. Especially considering the strong stock performance of Boston Beer Company over the last three years. We do feel that Boston Beer Company's stock has run far ahead of its future earnings potential.
Therefore in the battle of the brewers if we have to pick between Boston Beer Company and Constellation Brands, we rate Constellation Brands as the Winner.