Corona vs SOL Which Offers More Value?

Corona and Sol are two popular beer brands that have become synonymous with beach vacations and summer parties. However, their stocks tell a different story. The Corona brand, owned by Constellation Brands, has experienced steady growth in recent years, thanks to its strong market presence and successful marketing campaigns. On the other hand, Sol stocks have seen fluctuations due to competition and changing consumer preferences. In this comparison, we will delve deeper into the financial performance and prospects of these two beer giants.

Corona or SOL?

When comparing Corona and SOL, 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 Corona and SOL.

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. Corona has a dividend yield of 2.96%, while SOL has a dividend yield of 1.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Corona reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SOL reports a 5-year dividend growth of 17.08% year and a payout ratio of 28.92%.

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 Corona P/E ratio at 19.30 and SOL's P/E ratio at 18.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Corona P/B ratio is 0.37 while SOL's P/B ratio is 3.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Corona has seen a 5-year revenue growth of -0.01%, while SOL's is 0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Corona's ROE at 1.91% and SOL's ROE at 18.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥945.00 for Corona and €35.65 for SOL. Over the past year, Corona's prices ranged from ¥856.00 to ¥1001.00, with a yearly change of 16.94%. SOL's prices fluctuated between €25.40 and €37.95, with a yearly change of 49.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.