Seek Returns logo

ABEV vs. TSN: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ABEV and TSN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ABEV’s market capitalization of 38.65 billion USD is substantially larger than TSN’s 20.02 billion USD, indicating a significant difference in their market valuations.

TSN carries a higher beta at 0.58, 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, TSN is a standard domestic listing.

SymbolABEVTSN
Company NameAmbev S.A.Tyson Foods, Inc.
CountryBRUS
SectorConsumer DefensiveConsumer Defensive
IndustryBeverages - AlcoholicAgricultural Farm Products
CEOCarlos Eduardo Klutzenschell LisboaDonnie D. King
Price2.47 USD57.36 USD
Market Cap38.65 billion USD20.02 billion USD
Beta0.350.58
ExchangeNYSENYSE
IPO DateMarch 5, 1997March 17, 1980
ADRYesNo

Historical Performance

This chart compares the performance of ABEV and TSN 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.

ABEV vs. TSN: Growth of a $10,000 investment over the past one year.

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.

TSN

4.98%

Agricultural Farm Products Industry

Max
19.53%
Q3
12.40%
Median
7.41%
Q1
5.58%
Min
4.52%

TSN’s Return on Equity of 4.98% is in the lower quartile for the Agricultural Farm Products industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ABEV vs. TSN: A comparison of their ROE against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

3.71%

Agricultural Farm Products Industry

Max
15.58%
Q3
9.63%
Median
5.28%
Q1
3.56%
Min
1.71%

TSN’s Return on Invested Capital of 3.71% is in line with the norm for the Agricultural Farm Products industry, reflecting a standard level of efficiency in generating profits from its capital base.

ABEV vs. TSN: A comparison of their ROIC against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

1.70%

Agricultural Farm Products Industry

Max
8.26%
Q3
6.13%
Median
3.22%
Q1
1.67%
Min
1.12%

TSN’s Net Profit Margin of 1.70% is aligned with the median group of its peers in the Agricultural Farm Products industry. This indicates its ability to convert revenue into profit is typical for the sector.

ABEV vs. TSN: A comparison of their Net Profit Margin against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

2.88%

Agricultural Farm Products Industry

Max
9.85%
Q3
8.83%
Median
4.47%
Q1
2.84%
Min
0.72%

TSN’s Operating Profit Margin of 2.88% is around the midpoint for the Agricultural Farm Products industry, indicating that its efficiency in managing core business operations is typical for the sector.

ABEV vs. TSN: A comparison of their Operating Margin against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

Profitability at a Glance

SymbolABEVTSN
Return on Equity (TTM)14.93%4.98%
Return on Assets (TTM)9.80%2.52%
Return on Invested Capital (TTM)15.16%3.71%
Net Profit Margin (TTM)15.74%1.70%
Operating Profit Margin (TTM)24.12%2.88%
Gross Profit Margin (TTM)50.61%6.78%

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.

TSN

1.67

Agricultural Farm Products Industry

Max
3.86
Q3
2.58
Median
1.98
Q1
1.51
Min
1.26

TSN’s Current Ratio of 1.67 aligns with the median group of the Agricultural Farm Products industry, indicating that its short-term liquidity is in line with its sector peers.

ABEV vs. TSN: A comparison of their Current Ratio against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

0.49

Agricultural Farm Products Industry

Max
1.00
Q3
0.70
Median
0.53
Q1
0.34
Min
0.07

TSN’s Debt-to-Equity Ratio of 0.49 is typical for the Agricultural Farm Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ABEV vs. TSN: A comparison of their D/E Ratio against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

3.12

Agricultural Farm Products Industry

Max
12.12
Q3
9.52
Median
3.38
Q1
2.68
Min
0.95

TSN’s Interest Coverage Ratio of 3.12 is positioned comfortably within the norm for the Agricultural Farm Products industry, indicating a standard and healthy capacity to cover its interest payments.

ABEV vs. TSN: A comparison of their Interest Coverage against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

Financial Strength at a Glance

SymbolABEVTSN
Current Ratio (TTM)1.111.67
Quick Ratio (TTM)0.800.69
Debt-to-Equity Ratio (TTM)0.030.49
Debt-to-Asset Ratio (TTM)0.020.25
Net Debt-to-EBITDA Ratio (TTM)-0.542.97
Interest Coverage Ratio (TTM)10.023.12

Growth

The following charts compare key year-over-year (YoY) growth metrics for ABEV and TSN. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ABEV vs. TSN: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ABEV vs. TSN: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ABEV vs. TSN: A comparison of their annual year-over-year 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.

TSN

3.47%

Agricultural Farm Products Industry

Max
7.76%
Q3
5.34%
Median
3.60%
Q1
2.88%
Min
0.00%

TSN’s Dividend Yield of 3.47% is consistent with its peers in the Agricultural Farm Products industry, providing a dividend return that is standard for its sector.

ABEV vs. TSN: A comparison of their Dividend Yield against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

75.60%

Agricultural Farm Products Industry

Max
75.60%
Q3
52.87%
Median
34.22%
Q1
33.38%
Min
0.00%

TSN’s Dividend Payout Ratio of 75.60% is in the upper quartile for the Agricultural Farm Products 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.

ABEV vs. TSN: A comparison of their Payout Ratio against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

Dividend at a Glance

SymbolABEVTSN
Dividend Yield (TTM)1.89%3.47%
Dividend Payout Ratio (TTM)73.84%75.60%

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.

TSN

22.28

Agricultural Farm Products Industry

Max
33.52
Q3
20.70
Median
16.17
Q1
10.00
Min
4.88

A P/E Ratio of 22.28 places TSN in the upper quartile for the Agricultural Farm Products industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ABEV vs. TSN: A comparison of their P/E Ratio against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

1.38

Agricultural Farm Products Industry

Max
1.93
Q3
1.81
Median
1.54
Q1
1.32
Min
0.67

The Forward PEG Ratio is often not a primary valuation metric in the Agricultural Farm Products industry.

ABEV vs. TSN: A comparison of their Forward PEG Ratio against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

0.37

Agricultural Farm Products Industry

Max
2.89
Q3
1.43
Median
0.36
Q1
0.25
Min
0.01

TSN’s P/S Ratio of 0.37 aligns with the market consensus for the Agricultural Farm Products industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ABEV vs. TSN: A comparison of their P/S Ratio against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

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.

TSN

1.11

Agricultural Farm Products Industry

Max
3.19
Q3
1.88
Median
1.10
Q1
0.99
Min
0.77

TSN’s P/B Ratio of 1.11 is within the conventional range for the Agricultural Farm Products 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.

ABEV vs. TSN: A comparison of their P/B Ratio against their respective Beverages - Alcoholic and Agricultural Farm Products industry benchmarks.

Valuation at a Glance

SymbolABEVTSN
Price-to-Earnings Ratio (P/E, TTM)14.6822.28
Forward PEG Ratio (TTM)1.231.38
Price-to-Sales Ratio (P/S, TTM)2.310.37
Price-to-Book Ratio (P/B, TTM)2.241.11
Price-to-Free Cash Flow Ratio (P/FCF, TTM)9.6115.60
EV-to-EBITDA (TTM)6.6810.34
EV-to-Sales (TTM)2.130.52