Seek Returns logo

BUD vs. MO: A Head-to-Head Stock Comparison

Updated on

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

Company Profile

BUD trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, MO is a standard domestic listing.

SymbolBUDMO
Company NameAnheuser-Busch InBev SA/NVAltria Group, Inc.
CountryBelgiumUnited States
GICS SectorConsumer StaplesConsumer Staples
GICS IndustryBeveragesTobacco
Market Capitalization119.90 billion USD110.03 billion USD
ExchangeNYSENYSE
Listing DateJuly 1, 2009January 2, 1962
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of BUD and MO 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.

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

Historical Performance at a Glance

SymbolBUDMO
5-Day Price Return1.70%3.07%
13-Week Price Return-11.14%15.01%
26-Week Price Return7.61%24.43%
52-Week Price Return-4.40%30.19%
Month-to-Date Return2.37%5.75%
Year-to-Date Return9.06%25.26%
10-Day Avg. Volume2.22M7.66M
3-Month Avg. Volume1.90M8.98M
3-Month Volatility28.04%20.56%
Beta0.890.60

Profitability

Return on Equity (TTM)

BUD

3.64%

Beverages Industry

Max
49.46%
Q3
24.91%
Median
11.13%
Q1
5.27%
Min
-5.93%

BUD’s Return on Equity of 3.64% is in the lower quartile for the Beverages industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

MO

149.65%

Tobacco Industry

Max
49.48%
Q3
49.48%
Median
7.92%
Q1
5.28%
Min
4.04%

MO’s Return on Equity of 149.65% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

BUD vs. MO: A comparison of their Return on Equity (TTM) against their respective Beverages and Tobacco industry benchmarks.

Net Profit Margin (TTM)

BUD

12.16%

Beverages Industry

Max
21.86%
Q3
12.24%
Median
8.70%
Q1
5.33%
Min
-4.40%

BUD’s Net Profit Margin of 12.16% is aligned with the median group of its peers in the Beverages industry. This indicates its ability to convert revenue into profit is typical for the sector.

MO

37.24%

Tobacco Industry

Max
21.36%
Q3
18.49%
Median
11.05%
Q1
6.80%
Min
5.37%

MO’s Net Profit Margin of 37.24% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

BUD vs. MO: A comparison of their Net Profit Margin (TTM) against their respective Beverages and Tobacco industry benchmarks.

Operating Profit Margin (TTM)

BUD

27.17%

Beverages Industry

Max
29.32%
Q3
18.25%
Median
13.42%
Q1
10.58%
Min
0.71%

An Operating Profit Margin of 27.17% places BUD in the upper quartile for the Beverages industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MO

46.84%

Tobacco Industry

Max
14.35%
Q3
12.68%
Median
11.00%
Q1
10.58%
Min
10.58%

MO’s Operating Profit Margin of 46.84% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

BUD vs. MO: A comparison of their Operating Profit Margin (TTM) against their respective Beverages and Tobacco industry benchmarks.

Profitability at a Glance

SymbolBUDMO
Return on Equity (TTM)3.64%149.65%
Return on Assets (TTM)1.39%25.57%
Net Profit Margin (TTM)12.16%37.24%
Operating Profit Margin (TTM)27.17%46.84%
Gross Profit Margin (TTM)55.70%61.41%

Financial Strength

Current Ratio (MRQ)

BUD

0.64

Beverages Industry

Max
3.38
Q3
1.97
Median
1.21
Q1
0.86
Min
0.53

BUD’s Current Ratio of 0.64 falls into the lower quartile for the Beverages industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

MO

0.39

Tobacco Industry

Max
3.20
Q3
1.83
Median
0.83
Q1
0.72
Min
0.57

MO’s Current Ratio of 0.39 is notably low, falling beneath the typical range for the Tobacco industry. This suggests a heightened liquidity risk and could indicate potential challenges in meeting its short-term obligations.

BUD vs. MO: A comparison of their Current Ratio (MRQ) against their respective Beverages and Tobacco industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BUD

0.94

Beverages Industry

Max
2.11
Q3
1.23
Median
0.79
Q1
0.32
Min
0.00

BUD’s Debt-to-Equity Ratio of 0.94 is typical for the Beverages industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MO

8.67

Tobacco Industry

Max
2.19
Q3
2.19
Median
0.74
Q1
0.26
Min
0.01

With a Debt-to-Equity Ratio of 8.67, MO operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

BUD vs. MO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Beverages and Tobacco industry benchmarks.

Interest Coverage Ratio (TTM)

BUD

3.55

Beverages Industry

Max
78.96
Q3
40.67
Median
9.62
Q1
3.59
Min
0.81

In the lower quartile for the Beverages industry, BUD’s Interest Coverage Ratio of 3.55 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

MO

36.48

Tobacco Industry

Max
36.48
Q3
28.54
Median
7.02
Q1
6.32
Min
-11.45

MO’s Interest Coverage Ratio of 36.48 is in the upper quartile for the Tobacco industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

BUD vs. MO: A comparison of their Interest Coverage Ratio (TTM) against their respective Beverages and Tobacco industry benchmarks.

Financial Strength at a Glance

SymbolBUDMO
Current Ratio (MRQ)0.640.39
Quick Ratio (MRQ)0.450.24
Debt-to-Equity Ratio (MRQ)0.948.67
Interest Coverage Ratio (TTM)3.5536.48

Growth

Revenue Growth

BUD vs. MO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BUD vs. MO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BUD

3.00%

Beverages Industry

Max
6.93%
Q3
4.51%
Median
3.09%
Q1
2.03%
Min
0.00%

BUD’s Dividend Yield of 3.00% is consistent with its peers in the Beverages industry, providing a dividend return that is standard for its sector.

MO

6.25%

Tobacco Industry

Max
6.71%
Q3
6.06%
Median
5.48%
Q1
3.91%
Min
3.27%

With a Dividend Yield of 6.25%, MO offers a more attractive income stream than most of its peers in the Tobacco industry, signaling a strong commitment to shareholder returns.

BUD vs. MO: A comparison of their Dividend Yield (TTM) against their respective Beverages and Tobacco industry benchmarks.

Dividend Payout Ratio (TTM)

BUD

126.97%

Beverages Industry

Max
143.36%
Q3
99.22%
Median
67.03%
Q1
40.31%
Min
0.00%

BUD’s Dividend Payout Ratio of 126.97% is in the upper quartile for the Beverages 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.

MO

78.29%

Tobacco Industry

Max
77.64%
Q3
76.55%
Median
50.14%
Q1
47.08%
Min
42.39%

At 78.29%, MO’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Tobacco industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

BUD vs. MO: A comparison of their Dividend Payout Ratio (TTM) against their respective Beverages and Tobacco industry benchmarks.

Dividend at a Glance

SymbolBUDMO
Dividend Yield (TTM)3.00%6.25%
Dividend Payout Ratio (TTM)126.97%78.29%

Valuation

Price-to-Earnings Ratio (TTM)

BUD

17.20

Beverages Industry

Max
41.48
Q3
28.35
Median
19.09
Q1
15.36
Min
3.14

BUD’s P/E Ratio of 17.20 is within the middle range for the Beverages industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MO

12.52

Tobacco Industry

Max
42.16
Q3
36.45
Median
20.93
Q1
10.52
Min
9.15

MO’s P/E Ratio of 12.52 is within the middle range for the Tobacco industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

BUD vs. MO: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Beverages and Tobacco industry benchmarks.

Price-to-Sales Ratio (TTM)

BUD

2.09

Beverages Industry

Max
3.90
Q3
2.38
Median
1.54
Q1
0.84
Min
0.41

BUD’s P/S Ratio of 2.09 aligns with the market consensus for the Beverages industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MO

4.66

Tobacco Industry

Max
10.48
Q3
5.39
Median
3.32
Q1
1.54
Min
0.59

MO’s P/S Ratio of 4.66 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.

BUD vs. MO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Beverages and Tobacco industry benchmarks.

Price-to-Book Ratio (MRQ)

BUD

1.51

Beverages Industry

Max
6.29
Q3
3.58
Median
2.19
Q1
1.68
Min
0.91

BUD’s P/B Ratio of 1.51 is in the lower quartile for the Beverages 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.

MO

27.09

Tobacco Industry

Max
4.76
Q3
4.76
Median
2.18
Q1
1.70
Min
1.06

At 27.09, MO’s P/B Ratio is at an extreme premium to the Tobacco 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.

BUD vs. MO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Beverages and Tobacco industry benchmarks.

Valuation at a Glance

SymbolBUDMO
Price-to-Earnings Ratio (TTM)17.2012.52
Price-to-Sales Ratio (TTM)2.094.66
Price-to-Book Ratio (MRQ)1.5127.09
Price-to-Free Cash Flow Ratio (TTM)10.5012.60