United Spirits vs United Breweries Which Is More Favorable?

United Spirits and United Breweries are two major players in the alcoholic beverages industry in India. Both companies have a strong presence in the market with a wide range of popular brands. United Spirits, owned by British multinational Diageo, is known for its premium spirits like McDowell's No.1 and Royal Challenge. On the other hand, United Breweries, owned by Indian businessman Vijay Mallya, is famous for its flagship brand Kingfisher. Investors looking to capitalize on the growing alcohol consumption trend in India may consider investing in these stocks.

United Spirits or United Breweries?

When comparing United Spirits and United Breweries, 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 United Spirits and United Breweries.

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. United Spirits has a dividend yield of 0.61%, while United Breweries has a dividend yield of 0.52%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. United Spirits reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, United Breweries reports a 5-year dividend growth of 30.26% year and a payout ratio of 0.00%.

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 United Spirits P/E ratio at 73.97 and United Breweries's P/E ratio at 107.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. United Spirits P/B ratio is 13.74 while United Breweries's P/B ratio is 11.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, United Spirits has seen a 5-year revenue growth of 0.22%, while United Breweries's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with United Spirits's ROE at 26.30% and United Breweries's ROE at 11.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1448.15 for United Spirits and ₹1900.25 for United Breweries. Over the past year, United Spirits's prices ranged from ₹1027.30 to ₹1648.40, with a yearly change of 60.46%. United Breweries's prices fluctuated between ₹1547.00 and ₹2204.90, with a yearly change of 42.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.