ABEV vs. PM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABEV and PM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
PM’s market capitalization of 278.43 billion USD is significantly greater than ABEV’s 38.65 billion USD, highlighting its more substantial market valuation.
PM carries a higher beta at 0.54, indicating it’s more sensitive to market moves, while ABEV (beta: 0.35) exhibits greater stability.
ABEV trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, PM is a standard domestic listing.
| Symbol | ABEV | PM |
|---|---|---|
| Company Name | Ambev S.A. | Philip Morris International Inc. |
| Country | BR | US |
| Sector | Consumer Defensive | Consumer Defensive |
| Industry | Beverages - Alcoholic | Tobacco |
| CEO | Carlos Eduardo Klutzenschell Lisboa | Jacek Olczak |
| Price | 2.47 USD | 178.88 USD |
| Market Cap | 38.65 billion USD | 278.43 billion USD |
| Beta | 0.35 | 0.54 |
| Exchange | NYSE | NYSE |
| IPO Date | March 5, 1997 | March 17, 2008 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of ABEV and PM 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.
PM
-72.22%
Tobacco Industry
- Max
- 22.42%
- Q3
- 6.25%
- Median
- 4.04%
- Q1
- -111.21%
- Min
- -150.20%
PM has a negative Return on Equity of -72.22%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
PM
22.44%
Tobacco Industry
- Max
- 30.25%
- Q3
- 17.79%
- Median
- 6.37%
- Q1
- 1.66%
- Min
- 0.12%
In the upper quartile for the Tobacco industry, PM’s Return on Invested Capital of 22.44% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
PM
19.83%
Tobacco Industry
- Max
- 23.93%
- Q3
- 21.88%
- Median
- 11.78%
- Q1
- 6.14%
- Min
- 3.22%
PM’s Net Profit Margin of 19.83% is aligned with the median group of its peers in the Tobacco 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.
PM
36.40%
Tobacco Industry
- Max
- 51.15%
- Q3
- 27.45%
- Median
- 14.55%
- Q1
- 4.39%
- Min
- 0.82%
An Operating Profit Margin of 36.40% places PM in the upper quartile for the Tobacco 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 | PM |
|---|---|---|
| Return on Equity (TTM) | 14.93% | -72.22% |
| Return on Assets (TTM) | 9.80% | 11.68% |
| Return on Invested Capital (TTM) | 15.16% | 22.44% |
| Net Profit Margin (TTM) | 15.74% | 19.83% |
| Operating Profit Margin (TTM) | 24.12% | 36.40% |
| Gross Profit Margin (TTM) | 50.61% | 65.11% |
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.
PM
0.79
Tobacco Industry
- Max
- 4.42
- Q3
- 3.65
- Median
- 2.25
- Q1
- 0.78
- Min
- 0.57
PM’s Current Ratio of 0.79 aligns with the median group of the Tobacco 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.
PM
-4.55
Tobacco Industry
- Max
- 1.48
- Q3
- 0.76
- Median
- 0.74
- Q1
- 0.03
- Min
- 0.01
PM has a Debt-to-Equity Ratio of -4.55, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
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.
PM
9.53
Tobacco Industry
- Max
- 9.53
- Q3
- 8.30
- Median
- 4.34
- Q1
- 2.04
- Min
- -2.25
PM’s Interest Coverage Ratio of 9.53 is in the upper quartile for the Tobacco industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ABEV | PM |
|---|---|---|
| Current Ratio (TTM) | 1.11 | 0.79 |
| Quick Ratio (TTM) | 0.80 | 0.79 |
| Debt-to-Equity Ratio (TTM) | 0.03 | -4.55 |
| Debt-to-Asset Ratio (TTM) | 0.02 | 0.76 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.54 | 2.82 |
| Interest Coverage Ratio (TTM) | 10.02 | 9.53 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABEV and PM. 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.
PM
3.02%
Tobacco Industry
- Max
- 6.94%
- Q3
- 6.23%
- Median
- 2.98%
- Q1
- 0.37%
- Min
- 0.00%
PM’s Dividend Yield of 3.02% is consistent with its peers in the Tobacco industry, providing a dividend return that is standard for its sector.
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.
PM
108.91%
Tobacco Industry
- Max
- 171.09%
- Q3
- 98.77%
- Median
- 67.00%
- Q1
- 13.01%
- Min
- 0.00%
PM’s Dividend Payout Ratio of 108.91% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ABEV | PM |
|---|---|---|
| Dividend Yield (TTM) | 1.89% | 3.02% |
| Dividend Payout Ratio (TTM) | 73.84% | 108.91% |
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.
PM
36.58
Tobacco Industry
- Max
- 37.02
- Q3
- 31.70
- Median
- 27.58
- Q1
- 17.76
- Min
- 9.72
A P/E Ratio of 36.58 places PM in the upper quartile for the Tobacco industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
PM
4.12
Tobacco Industry
- Max
- 6.56
- Q3
- 4.77
- Median
- 3.75
- Q1
- 3.29
- Min
- 3.17
The Forward PEG Ratio is often not a primary valuation metric in the Tobacco industry.
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.
PM
7.26
Tobacco Industry
- Max
- 7.35
- Q3
- 7.29
- Median
- 4.89
- Q1
- 2.91
- Min
- 0.49
PM’s P/S Ratio of 7.26 aligns with the market consensus for the Tobacco 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.
PM
-25.50
Tobacco Industry
- Max
- 1.61
- Q3
- 1.61
- Median
- 1.52
- Q1
- 1.20
- Min
- 1.00
The P/B Ratio is often not a primary valuation metric for the Tobacco industry.
Valuation at a Glance
| Symbol | ABEV | PM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 14.68 | 36.58 |
| Forward PEG Ratio (TTM) | 1.23 | 4.12 |
| Price-to-Sales Ratio (P/S, TTM) | 2.31 | 7.26 |
| Price-to-Book Ratio (P/B, TTM) | 2.24 | -25.50 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.61 | 27.31 |
| EV-to-EBITDA (TTM) | 6.68 | 20.18 |
| EV-to-Sales (TTM) | 2.13 | 8.44 |