ABEV vs. DEO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABEV and DEO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
DEO’s market capitalization of 58.19 billion USD is significantly greater than ABEV’s 38.65 billion USD, highlighting its more substantial market valuation.
With betas of 0.35 for ABEV and 0.28 for DEO, both stocks show similar sensitivity to overall market movements.
ABEV and DEO are both American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies without directly engaging with overseas stock exchanges.
| Symbol | ABEV | DEO |
|---|---|---|
| Company Name | Ambev S.A. | Diageo plc |
| Country | BR | GB |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Beverages - Alcoholic | Beverages - Wineries & Distilleries |
| CEO | Carlos Eduardo Klutzenschell Lisboa | Debra Ann Crew |
| Price | 2.47 USD | 104.73 USD |
| Market Cap | 38.65 billion USD | 58.19 billion USD |
| Beta | 0.35 | 0.28 |
| Exchange | NYSE | NYSE |
| IPO Date | March 5, 1997 | March 14, 1991 |
| ADR | Yes | Yes |
Historical Performance
This chart compares the performance of ABEV and DEO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ABEV
14.93%
Beverages - Alcoholic Industry
- Max
- 14.93%
- Q3
- 11.65%
- Median
- 9.82%
- Q1
- 7.98%
- Min
- 7.40%
In the upper quartile for the Beverages - Alcoholic industry, ABEV’s Return on Equity of 14.93% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
DEO
35.39%
Beverages - Wineries & Distilleries Industry
- Max
- 35.39%
- Q3
- 26.24%
- Median
- 12.22%
- Q1
- 0.68%
- Min
- -0.99%
In the upper quartile for the Beverages - Wineries & Distilleries industry, DEO’s Return on Equity of 35.39% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ABEV
15.16%
Beverages - Alcoholic Industry
- Max
- 8.96%
- Q3
- 8.78%
- Median
- 7.43%
- Q1
- 6.60%
- Min
- 6.50%
ABEV’s Return on Invested Capital of 15.16% is exceptionally high, placing it well beyond the typical range for the Beverages - Alcoholic industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
DEO
11.33%
Beverages - Wineries & Distilleries Industry
- Max
- 12.16%
- Q3
- 11.54%
- Median
- 6.24%
- Q1
- 1.03%
- Min
- 0.64%
DEO’s Return on Invested Capital of 11.33% is in line with the norm for the Beverages - Wineries & Distilleries industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ABEV
15.74%
Beverages - Alcoholic Industry
- Max
- 15.74%
- Q3
- 11.09%
- Median
- 7.37%
- Q1
- 4.71%
- Min
- 3.46%
A Net Profit Margin of 15.74% places ABEV in the upper quartile for the Beverages - Alcoholic industry, signifying strong profitability and more effective cost management than most of its peers.
DEO
17.79%
Beverages - Wineries & Distilleries Industry
- Max
- 21.86%
- Q3
- 18.81%
- Median
- 9.72%
- Q1
- 1.03%
- Min
- -0.80%
DEO’s Net Profit Margin of 17.79% is aligned with the median group of its peers in the Beverages - Wineries & Distilleries industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ABEV
24.12%
Beverages - Alcoholic Industry
- Max
- 26.22%
- Q3
- 21.64%
- Median
- 11.53%
- Q1
- 8.73%
- Min
- 4.73%
An Operating Profit Margin of 24.12% places ABEV in the upper quartile for the Beverages - Alcoholic industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
DEO
28.89%
Beverages - Wineries & Distilleries Industry
- Max
- 28.89%
- Q3
- 28.11%
- Median
- 17.76%
- Q1
- 6.58%
- Min
- 3.33%
An Operating Profit Margin of 28.89% places DEO in the upper quartile for the Beverages - Wineries & Distilleries industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ABEV | DEO |
|---|---|---|
| Return on Equity (TTM) | 14.93% | 35.39% |
| Return on Assets (TTM) | 9.80% | 7.66% |
| Return on Invested Capital (TTM) | 15.16% | 11.33% |
| Net Profit Margin (TTM) | 15.74% | 17.79% |
| Operating Profit Margin (TTM) | 24.12% | 28.89% |
| Gross Profit Margin (TTM) | 50.61% | 60.45% |
Financial Strength
Current Ratio
ABEV
1.11
Beverages - Alcoholic Industry
- Max
- 2.16
- Q3
- 1.70
- Median
- 1.37
- Q1
- 0.95
- Min
- 0.70
ABEV’s Current Ratio of 1.11 aligns with the median group of the Beverages - Alcoholic industry, indicating that its short-term liquidity is in line with its sector peers.
DEO
1.60
Beverages - Wineries & Distilleries Industry
- Max
- 3.88
- Q3
- 3.10
- Median
- 2.22
- Q1
- 1.43
- Min
- 0.92
DEO’s Current Ratio of 1.60 aligns with the median group of the Beverages - Wineries & Distilleries industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ABEV
0.03
Beverages - Alcoholic Industry
- Max
- 0.92
- Q3
- 0.90
- Median
- 0.66
- Q1
- 0.16
- Min
- 0.03
Falling into the lower quartile for the Beverages - Alcoholic industry, ABEV’s Debt-to-Equity Ratio of 0.03 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
DEO
2.11
Beverages - Wineries & Distilleries Industry
- Max
- 2.11
- Q3
- 1.85
- Median
- 1.22
- Q1
- 0.61
- Min
- 0.37
DEO’s leverage is in the upper quartile of the Beverages - Wineries & Distilleries industry, with a Debt-to-Equity Ratio of 2.11. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
ABEV
10.02
Beverages - Alcoholic Industry
- Max
- 10.02
- Q3
- 10.02
- Median
- 3.93
- Q1
- 3.73
- Min
- 3.32
ABEV’s Interest Coverage Ratio of 10.02 is positioned comfortably within the norm for the Beverages - Alcoholic industry, indicating a standard and healthy capacity to cover its interest payments.
DEO
7.42
Beverages - Wineries & Distilleries Industry
- Max
- 9.07
- Q3
- 8.13
- Median
- 7.62
- Q1
- 5.77
- Min
- 2.23
DEO’s Interest Coverage Ratio of 7.42 is positioned comfortably within the norm for the Beverages - Wineries & Distilleries industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ABEV | DEO |
|---|---|---|
| Current Ratio (TTM) | 1.11 | 1.60 |
| Quick Ratio (TTM) | 0.80 | 0.67 |
| Debt-to-Equity Ratio (TTM) | 0.03 | 2.11 |
| Debt-to-Asset Ratio (TTM) | 0.02 | 0.46 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.54 | 3.13 |
| Interest Coverage Ratio (TTM) | 10.02 | 7.42 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABEV and DEO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ABEV
1.89%
Beverages - Alcoholic Industry
- Max
- 1,539.93%
- Q3
- 3.36%
- Median
- 1.63%
- Q1
- 0.78%
- Min
- 0.00%
ABEV’s Dividend Yield of 1.89% is consistent with its peers in the Beverages - Alcoholic industry, providing a dividend return that is standard for its sector.
DEO
4.12%
Beverages - Wineries & Distilleries Industry
- Max
- 4.29%
- Q3
- 3.62%
- Median
- 2.95%
- Q1
- 2.29%
- Min
- 1.61%
With a Dividend Yield of 4.12%, DEO offers a more attractive income stream than most of its peers in the Beverages - Wineries & Distilleries industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ABEV
73.84%
Beverages - Alcoholic Industry
- Max
- 73.84%
- Q3
- 45.81%
- Median
- 33.17%
- Q1
- 7.61%
- Min
- 0.00%
ABEV’s Dividend Payout Ratio of 73.84% is in the upper quartile for the Beverages - Alcoholic industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
DEO
80.45%
Beverages - Wineries & Distilleries Industry
- Max
- 98.04%
- Q3
- 89.24%
- Median
- 80.45%
- Q1
- 64.39%
- Min
- 48.33%
DEO’s Dividend Payout Ratio of 80.45% is within the typical range for the Beverages - Wineries & Distilleries industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ABEV | DEO |
|---|---|---|
| Dividend Yield (TTM) | 1.89% | 4.12% |
| Dividend Payout Ratio (TTM) | 73.84% | 80.45% |
Valuation
Price-to-Earnings Ratio
ABEV
14.68
Beverages - Alcoholic Industry
- Max
- 29.99
- Q3
- 27.46
- Median
- 17.07
- Q1
- 13.71
- Min
- 9.30
ABEV’s P/E Ratio of 14.68 is within the middle range for the Beverages - Alcoholic industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
DEO
294.77
Beverages - Wineries & Distilleries Industry
- Max
- 283.34
- Q3
- 171.27
- Median
- 59.20
- Q1
- 36.80
- Min
- 14.39
At 294.77, DEO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Beverages - Wineries & Distilleries industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ABEV
1.23
Beverages - Alcoholic Industry
- Max
- 2.24
- Q3
- 2.12
- Median
- 1.48
- Q1
- 1.20
- Min
- 1.19
ABEV’s Forward PEG Ratio of 1.23 is within the middle range of its peers in the Beverages - Alcoholic industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
DEO
43.04
Beverages - Wineries & Distilleries Industry
- Max
- 43.98
- Q3
- 24.22
- Median
- 4.45
- Q1
- 3.21
- Min
- 1.97
A Forward PEG Ratio of 43.04 places DEO in the upper quartile for the Beverages - Wineries & Distilleries industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
ABEV
2.31
Beverages - Alcoholic Industry
- Max
- 2.32
- Q3
- 2.30
- Median
- 1.63
- Q1
- 0.89
- Min
- 0.76
ABEV’s P/S Ratio of 2.31 is in the upper echelon for the Beverages - Alcoholic industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
DEO
2.10
Beverages - Wineries & Distilleries Industry
- Max
- 3.18
- Q3
- 2.89
- Median
- 2.41
- Q1
- 1.76
- Min
- 0.97
DEO’s P/S Ratio of 2.10 aligns with the market consensus for the Beverages - Wineries & Distilleries industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ABEV
2.24
Beverages - Alcoholic Industry
- Max
- 2.39
- Q3
- 2.34
- Median
- 1.97
- Q1
- 1.54
- Min
- 0.74
ABEV’s P/B Ratio of 2.24 is within the conventional range for the Beverages - Alcoholic industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
DEO
103.04
Beverages - Wineries & Distilleries Industry
- Max
- 66.00
- Q3
- 27.93
- Median
- 3.67
- Q1
- 2.54
- Min
- 0.77
At 103.04, DEO’s P/B Ratio is at an extreme premium to the Beverages - Wineries & Distilleries industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ABEV | DEO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 14.68 | 294.77 |
| Forward PEG Ratio (TTM) | 1.23 | 43.04 |
| Price-to-Sales Ratio (P/S, TTM) | 2.31 | 2.10 |
| Price-to-Book Ratio (P/B, TTM) | 2.24 | 103.04 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.61 | 10.23 |
| EV-to-EBITDA (TTM) | 6.68 | 9.74 |
| EV-to-Sales (TTM) | 2.13 | 3.09 |