ABEV vs. KHC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABEV and KHC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ABEV’s market capitalization stands at 38.65 billion USD, while KHC’s is 31.55 billion USD, indicating their market valuations are broadly comparable.
ABEV’s beta of 0.35 points to significantly higher volatility compared to KHC (beta: 0.23), suggesting ABEV has greater potential for both gains and losses relative to market movements.
ABEV trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, KHC is a standard domestic listing.
| Symbol | ABEV | KHC |
|---|---|---|
| Company Name | Ambev S.A. | The Kraft Heinz Company |
| Country | BR | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Beverages - Alcoholic | Packaged Foods |
| CEO | Carlos Eduardo Klutzenschell Lisboa | Carlos A. Abrams-Rivera |
| Price | 2.47 USD | 26.66 USD |
| Market Cap | 38.65 billion USD | 31.55 billion USD |
| Beta | 0.35 | 0.23 |
| Exchange | NYSE | NASDAQ |
| IPO Date | March 5, 1997 | July 6, 2015 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of ABEV and KHC 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.
KHC
5.42%
Packaged Foods Industry
- Max
- 31.57%
- Q3
- 16.24%
- Median
- 8.30%
- Q1
- 3.79%
- Min
- -9.32%
KHC’s Return on Equity of 5.42% is on par with the norm for the Packaged Foods industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
KHC
5.97%
Packaged Foods Industry
- Max
- 18.26%
- Q3
- 11.05%
- Median
- 6.28%
- Q1
- 4.78%
- Min
- -3.45%
KHC’s Return on Invested Capital of 5.97% is in line with the norm for the Packaged Foods 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.
KHC
10.44%
Packaged Foods Industry
- Max
- 12.82%
- Q3
- 6.72%
- Median
- 4.53%
- Q1
- 2.61%
- Min
- -2.02%
A Net Profit Margin of 10.44% places KHC in the upper quartile for the Packaged Foods industry, signifying strong profitability and more effective cost management than most of its peers.
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.
KHC
6.20%
Packaged Foods Industry
- Max
- 19.80%
- Q3
- 10.83%
- Median
- 6.62%
- Q1
- 4.39%
- Min
- 1.79%
KHC’s Operating Profit Margin of 6.20% is around the midpoint for the Packaged Foods industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ABEV | KHC |
|---|---|---|
| Return on Equity (TTM) | 14.93% | 5.42% |
| Return on Assets (TTM) | 9.80% | 2.94% |
| Return on Invested Capital (TTM) | 15.16% | 5.97% |
| Net Profit Margin (TTM) | 15.74% | 10.44% |
| Operating Profit Margin (TTM) | 24.12% | 6.20% |
| Gross Profit Margin (TTM) | 50.61% | 34.56% |
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.
KHC
1.31
Packaged Foods Industry
- Max
- 4.91
- Q3
- 2.66
- Median
- 1.35
- Q1
- 1.02
- Min
- 0.45
KHC’s Current Ratio of 1.31 aligns with the median group of the Packaged Foods 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.
KHC
0.44
Packaged Foods Industry
- Max
- 2.61
- Q3
- 1.56
- Median
- 0.82
- Q1
- 0.36
- Min
- 0.00
KHC’s Debt-to-Equity Ratio of 0.44 is typical for the Packaged Foods industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
KHC
1.72
Packaged Foods Industry
- Max
- 12.62
- Q3
- 8.96
- Median
- 3.16
- Q1
- 1.69
- Min
- -3.36
KHC’s Interest Coverage Ratio of 1.72 is positioned comfortably within the norm for the Packaged Foods industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ABEV | KHC |
|---|---|---|
| Current Ratio (TTM) | 1.11 | 1.31 |
| Quick Ratio (TTM) | 0.80 | 0.81 |
| Debt-to-Equity Ratio (TTM) | 0.03 | 0.44 |
| Debt-to-Asset Ratio (TTM) | 0.02 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.54 | 7.18 |
| Interest Coverage Ratio (TTM) | 10.02 | 1.72 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABEV and KHC. 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.
KHC
6.00%
Packaged Foods Industry
- Max
- 17.31%
- Q3
- 4.06%
- Median
- 2.28%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 6.00%, KHC offers a more attractive income stream than most of its peers in the Packaged Foods 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.
KHC
72.39%
Packaged Foods Industry
- Max
- 203.43%
- Q3
- 70.94%
- Median
- 16.83%
- Q1
- 0.00%
- Min
- 0.00%
KHC’s Dividend Payout Ratio of 72.39% is in the upper quartile for the Packaged Foods 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.
Dividend at a Glance
| Symbol | ABEV | KHC |
|---|---|---|
| Dividend Yield (TTM) | 1.89% | 6.00% |
| Dividend Payout Ratio (TTM) | 73.84% | 72.39% |
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.
KHC
12.03
Packaged Foods Industry
- Max
- 38.86
- Q3
- 28.67
- Median
- 20.65
- Q1
- 13.95
- Min
- 3.16
In the lower quartile for the Packaged Foods industry, KHC’s P/E Ratio of 12.03 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
KHC
6.69
Packaged Foods Industry
- Max
- 9.46
- Q3
- 4.68
- Median
- 1.99
- Q1
- 1.27
- Min
- 0.07
A Forward PEG Ratio of 6.69 places KHC in the upper quartile for the Packaged Foods 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.
KHC
1.24
Packaged Foods Industry
- Max
- 2.51
- Q3
- 1.41
- Median
- 0.90
- Q1
- 0.65
- Min
- 0.18
KHC’s P/S Ratio of 1.24 aligns with the market consensus for the Packaged Foods 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.
KHC
0.65
Packaged Foods Industry
- Max
- 4.92
- Q3
- 3.32
- Median
- 2.11
- Q1
- 1.47
- Min
- 0.62
KHC’s P/B Ratio of 0.65 is in the lower quartile for the Packaged Foods industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ABEV | KHC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 14.68 | 12.03 |
| Forward PEG Ratio (TTM) | 1.23 | 6.69 |
| Price-to-Sales Ratio (P/S, TTM) | 2.31 | 1.24 |
| Price-to-Book Ratio (P/B, TTM) | 2.24 | 0.65 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.61 | 10.43 |
| EV-to-EBITDA (TTM) | 6.68 | 18.80 |
| EV-to-Sales (TTM) | 2.13 | 2.01 |