Head-To-Head Review: Boston Beer (NYSE:SAM) and Innovation Beverage Group (NASDAQ:IBG)
by Michael Walen · The Markets DailyBoston Beer (NYSE:SAM – Get Free Report) and Innovation Beverage Group (NASDAQ:IBG – Get Free Report) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Profitability
This table compares Boston Beer and Innovation Beverage Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boston Beer | -3.59% | 10.40% | 6.38% |
| Innovation Beverage Group | N/A | N/A | N/A |
Earnings and Valuation
This table compares Boston Beer and Innovation Beverage Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boston Beer | $2.09 billion | 1.12 | $108.47 million | ($6.83) | -33.70 |
| Innovation Beverage Group | $2.77 million | 0.33 | -$6.19 million | ($0.42) | -2.03 |
Boston Beer has higher revenue and earnings than Innovation Beverage Group. Boston Beer is trading at a lower price-to-earnings ratio than Innovation Beverage Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Boston Beer and Innovation Beverage Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boston Beer | 2 | 9 | 1 | 0 | 1.92 |
| Innovation Beverage Group | 1 | 0 | 0 | 0 | 1.00 |
Boston Beer presently has a consensus price target of $208.82, indicating a potential downside of 9.28%. Given Boston Beer’s stronger consensus rating and higher probable upside, equities analysts plainly believe Boston Beer is more favorable than Innovation Beverage Group.
Risk and Volatility
Boston Beer has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Innovation Beverage Group has a beta of 3.1, meaning that its share price is 210% more volatile than the S&P 500.
Insider & Institutional Ownership
81.1% of Boston Beer shares are held by institutional investors. 27.4% of Boston Beer shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Boston Beer beats Innovation Beverage Group on 10 of the 14 factors compared between the two stocks.
About Boston Beer
The Boston Beer Company, Inc produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, flavored malt beverages, and hard seltzers under the Samuel Adams, Twisted Tea, Truly, Angry Orchard, Dogfish Head, Angel City, and Coney Island brand names. The company markets and sells its products to a network wholesaler in the United States, as well as wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other e-commerce retail outlets. It sells its products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.
About Innovation Beverage Group
Innovation Beverage Group (formerly Australian Boutique Spirits) is an award-winning distillery that produces a variety of brands in-house and imports global brands to sell exclusively to the Australian market through bevmart.com.au. It was recently recognized as the Australian Liqueur Distillery of the year by the Melbourne International Spirits Competition.