Anheuser-Busch InBev SA/NV (NYSE:BUD – Get Free Report) and Fomento Economico Mexicano (NYSE:FMX – Get Free Report) are both large-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Anheuser-Busch InBev SA/NV and Fomento Economico Mexicano, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Anheuser-Busch InBev SA/NV | 0 | 4 | 12 | 0 | 2.75 |
| Fomento Economico Mexicano | 0 | 4 | 3 | 0 | 2.43 |
Anheuser-Busch InBev SA/NV presently has a consensus price target of $87.83, suggesting a potential upside of 11.68%. Fomento Economico Mexicano has a consensus price target of $135.67, suggesting a potential upside of 12.13%. Given Fomento Economico Mexicano’s higher probable upside, analysts plainly believe Fomento Economico Mexicano is more favorable than Anheuser-Busch InBev SA/NV.
Volatility & Risk
Dividends
Anheuser-Busch InBev SA/NV pays an annual dividend of $1.41 per share and has a dividend yield of 1.8%. Fomento Economico Mexicano pays an annual dividend of $2.43 per share and has a dividend yield of 2.0%. Anheuser-Busch InBev SA/NV pays out 29.9% of its earnings in the form of a dividend. Fomento Economico Mexicano pays out 48.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation & Earnings
This table compares Anheuser-Busch InBev SA/NV and Fomento Economico Mexicano”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Anheuser-Busch InBev SA/NV | $59.32 billion | 2.68 | $6.84 billion | $4.72 | 16.66 |
| Fomento Economico Mexicano | $43.86 billion | 0.95 | $1.08 billion | $5.00 | 24.20 |
Anheuser-Busch InBev SA/NV has higher revenue and earnings than Fomento Economico Mexicano. Anheuser-Busch InBev SA/NV is trading at a lower price-to-earnings ratio than Fomento Economico Mexicano, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
5.5% of Anheuser-Busch InBev SA/NV shares are held by institutional investors. Comparatively, 61.0% of Fomento Economico Mexicano shares are held by institutional investors. 4.5% of Anheuser-Busch InBev SA/NV shares are held by insiders. Comparatively, 5.7% of Fomento Economico Mexicano shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Anheuser-Busch InBev SA/NV and Fomento Economico Mexicano’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Anheuser-Busch InBev SA/NV | 14.90% | 16.42% | 7.47% |
| Fomento Economico Mexicano | 3.60% | 7.24% | 2.82% |
Summary
Anheuser-Busch InBev SA/NV beats Fomento Economico Mexicano on 10 of the 16 factors compared between the two stocks.
About Anheuser-Busch InBev SA/NV
Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands. The company operates in North America, Middle America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1366 and is headquartered in Leuven, Belgium.
About Fomento Economico Mexicano
Fomento Económico Mexicano, S.A.B. de C.V., through its subsidiaries, operates as a bottler of Coca-Cola trademark beverages. The company produces, markets, and distributes Coca-Cola trademark beverages in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, Argentina, and Uruguay. It also operates small-box retail chain stores in Mexico, Colombia, Peru, Chile, and Brazil under the OXXO name; retail service stations for fuels, motor oils, lubricants, and car care products under the OXXO GAS name in Mexico; and drugstores in Chile, Colombia, Ecuador, and Mexico under the Cruz Verde, Fybeca, SanaSana, YZA, La Moderna, and Farmacon names. In addition, the company is involved in the production and distribution of collers, commercial refrigeration equipment, plastic boxes, food processing, and preservation and weighing equipment; and provision of logistic transportation, distribution and maintenance, point-of-sale refrigeration, and plastics solutions, as well as distribution platform for cleaning products and consumables. Further, it operates small-box retail and food convenience chain stores in Switzerland, Germany, Austria, Luxembourg, and the Netherlands under the k kiosk, Brezelkönig, BackWerk, Ditsch, Press & Books, avec, Caffè Spettacolo, and ok.) names, as well as pretzels under the Ditsch name. The company was founded in 1890 and is based in Monterrey, Mexico.
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