WallStSmart

Ambev SA ADR (ABEV)vsFomento Economico Mexicano (FMX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fomento Economico Mexicano generates 853% more annual revenue ($840.95B vs $88.24B). ABEV leads profitability with a 17.6% profit margin vs 2.3%. ABEV appears more attractively valued with a PEG of 1.95. FMX earns a higher WallStSmart Score of 59/100 (C).

ABEV

Buy

57

out of 100

Grade: C

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

FMX

Buy

59

out of 100

Grade: C

Growth: 8.0Profit: 5.5Value: 6.7Quality: 5.3
Piotroski: 2/9Altman Z: 2.46
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVSignificantly Overvalued (-136.4%)

Margin of Safety

-136.4%

Fair Value

$1.29

Current Price

$2.71

$1.42 premium

UndervaluedFair: $1.29Overvalued
FMXUndervalued (+16.2%)

Margin of Safety

+16.2%

Fair Value

$135.25

Current Price

$101.39

$33.86 discount

UndervaluedFair: $135.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV4 strengths · Avg: 8.5/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

FMX2 strengths · Avg: 9.0/10
EPS GrowthGrowth
63.8%10/10

Earnings expanding 63.8% YoY

Free Cash FlowQuality
$9.49B8/10

Generating 9.5B in free cash flow

Areas to Watch

ABEV3 concerns · Avg: 2.7/10
PEG RatioValuation
1.954/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.2%2/10

Revenue declined 8.2%

EPS GrowthGrowth
-10.1%2/10

Earnings declined 10.1%

FMX4 concerns · Avg: 3.5/10
P/E RatioValuation
35.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.0x4/10

Trading at 19.0x book value

Profit MarginProfitability
2.3%3/10

2.3% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, P/E Ratio, Price/Book. Profitability is solid with margins at 17.6% and operating margin at 28.2%.

Bull Case : FMX

The strongest argument for FMX centers on EPS Growth, Free Cash Flow.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : FMX

The primary concerns for FMX are P/E Ratio, Price/Book, Profit Margin. Thin 2.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

ABEV profiles as a declining stock while FMX is a value play — different risk/reward profiles.

ABEV carries more volatility with a beta of 0.28 — expect wider price swings.

FMX is growing revenue faster at 5.4% — sustainability is the question.

ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.

Bottom Line

FMX scores higher overall (59/100 vs 57/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ambev SA ADR

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.

Fomento Economico Mexicano

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Fomento Econmico Mexicano, SAB de CV, is a bottler of Coca-Cola brand beverages. The company is headquartered in Monterrey, Mexico.

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