WallStSmart

Ambev SA ADR (ABEV)vsConstellation Brands Inc Class A (STZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ambev SA ADR generates 840% more annual revenue ($88.24B vs $9.38B). ABEV leads profitability with a 17.6% profit margin vs 11.8%. ABEV appears more attractively valued with a PEG of 1.95. ABEV earns a higher WallStSmart Score of 57/100 (C).

ABEV

Buy

57

out of 100

Grade: C

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

STZ

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.61
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
STZSignificantly Overvalued (-276.7%)

Margin of Safety

-276.7%

Fair Value

$43.32

Current Price

$149.62

$106.30 premium

UndervaluedFair: $43.32Overvalued

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%

STZ1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

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%

STZ4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Debt/EquityHealth
1.383/10

Elevated debt levels

PEG RatioValuation
5.462/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.8%2/10

Revenue declined 9.8%

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 : STZ

The strongest argument for STZ centers on Operating Margin.

Bear Case : ABEV

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

Bear Case : STZ

The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

STZ carries more volatility with a beta of 0.42 — expect wider price swings.

ABEV is growing revenue faster at -8.2% — sustainability is the question.

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

Monitor BEVERAGES - BREWERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ABEV scores higher overall (57/100 vs 50/100), backed by strong 17.6% margins. 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.

Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

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