Ambev vs Heineken Which Is More Lucrative?

Ambev and Heineken are two major players in the global beer market, with both companies having a strong foothold in various regions around the world. Investors often compare the stocks of these two companies due to their similar industry positions and market performance. Ambev, a Brazilian-based company, is known for its strong presence in Latin America, while Heineken, a Dutch company, has a strong presence in Europe and other parts of the world. Both companies have shown resilience and growth in the face of changing market conditions, making them attractive options for investors looking to diversify their portfolios in the beverage industry.

Ambev or Heineken?

When comparing Ambev and Heineken, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Ambev and Heineken.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Ambev has a dividend yield of 6.88%, while Heineken has a dividend yield of 3.19%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ambev reports a 5-year dividend growth of -0.23% year and a payout ratio of 84.74%. On the other hand, Heineken reports a 5-year dividend growth of 2.58% year and a payout ratio of 210.99%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Ambev P/E ratio at 14.59 and Heineken's P/E ratio at 15.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ambev P/B ratio is 2.07 while Heineken's P/B ratio is 0.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ambev has seen a 5-year revenue growth of 0.58%, while Heineken's is 1.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ambev's ROE at 15.54% and Heineken's ROE at 5.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.14 for Ambev and $30.70 for Heineken. Over the past year, Ambev's prices ranged from $2.01 to $3.00, with a yearly change of 49.25%. Heineken's prices fluctuated between $30.46 and $43.56, with a yearly change of 43.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.