WallStSmart

Ambev SA ADR (ABEV)vsBoston Beer Company Inc (SAM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ambev SA ADR generates 4437% more annual revenue ($88.24B vs $1.95B). ABEV leads profitability with a 17.6% profit margin vs -3.1%. SAM appears more attractively valued with a PEG of 0.78. ABEV earns a higher WallStSmart Score of 55/100 (C).

ABEV

Buy

55

out of 100

Grade: C

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

SAM

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 7.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+74.5%)

Margin of Safety

+74.5%

Fair Value

$11.95

Current Price

$2.90

$9.05 discount

UndervaluedFair: $11.95Overvalued
SAMUndervalued (+36.2%)

Margin of Safety

+36.2%

Fair Value

$393.18

Current Price

$206.34

$186.84 discount

UndervaluedFair: $393.18Overvalued

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
14.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

SAM3 strengths · Avg: 8.0/10
PEG RatioValuation
0.788/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

EPS GrowthGrowth
48.6%8/10

Earnings expanding 48.6% YoY

Areas to Watch

ABEV3 concerns · Avg: 2.7/10
PEG RatioValuation
2.004/10

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%

SAM4 concerns · Avg: 2.3/10
Operating MarginProfitability
5.0%3/10

Operating margin of 5.0%

Return on EquityProfitability
-7.8%2/10

ROE of -7.8% — below average capital efficiency

Revenue GrowthGrowth
-4.4%2/10

Revenue declined 4.4%

Free Cash FlowQuality
$-32.76M2/10

Negative free cash flow — burning cash

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 : SAM

The strongest argument for SAM centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bear Case : ABEV

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

Bear Case : SAM

The primary concerns for SAM are Operating Margin, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

ABEV profiles as a declining stock while SAM is a turnaround play — different risk/reward profiles.

SAM carries more volatility with a beta of 0.90 — expect wider price swings.

SAM is growing revenue faster at -4.4% — sustainability is the question.

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

Bottom Line

ABEV scores higher overall (55/100 vs 49/100), backed by strong 17.6% margins. SAM offers better value entry with a 36.2% margin of safety. Both earn "Buy" and "Hold" 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.

Boston Beer Company Inc

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

The Boston Beer Company, Inc. produces and sells alcoholic beverages primarily in the United States. The company is headquartered in Boston, Massachusetts.

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