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Comparing NewAge (NASDAQ:NBEVQ) and Boston Beer (NYSE:SAM)

Defense World ·  Jan 23, 2023 01:32

NewAge (NASDAQ:NBEVQ – Get Rating) and Boston Beer (NYSE:SAM – Get Rating) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Volatility and Risk

NewAge has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Boston Beer has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

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Insider & Institutional Ownership

1.3% of NewAge shares are held by institutional investors. Comparatively, 68.7% of Boston Beer shares are held by institutional investors. 2.9% of NewAge shares are held by insiders. Comparatively, 23.3% of Boston Beer shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares NewAge and Boston Beer's gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NewAge $279.47 million 0.00 -$39.34 million N/A N/A
Boston Beer $2.06 billion 2.12 $14.55 million $2.14 165.81

Boston Beer has higher revenue and earnings than NewAge.

Analyst Ratings

This is a summary of current ratings and price targets for NewAge and Boston Beer, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NewAge 0 0 0 0 N/A
Boston Beer 5 8 2 0 1.80

Boston Beer has a consensus target price of $351.47, suggesting a potential downside of 0.95%. Given Boston Beer's higher possible upside, analysts clearly believe Boston Beer is more favorable than NewAge.

Profitability

This table compares NewAge and Boston Beer's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NewAge N/A N/A N/A
Boston Beer 1.31% 9.55% 6.74%

Summary

Boston Beer beats NewAge on 10 of the 11 factors compared between the two stocks.

About NewAge

(Get Rating)

NewAge, Inc. develops, markets, sells, and distributes healthy products in the United States, Japan, China, and internationally. The company operates in two segments, Direct / Social Selling and Direct Store. It provides health and wellness, energy drink, essential oil and anti-aging skincare, cosmetic, beverage, snacks, water and air filtration, and personal care products, as well as weight management, nutritional supplement, nutraceutical, and slenderiize products; diagnostic products, such as DNA testing and diagnostic kits and products; and CBD products. The company offers its products under the Tahitian Noni, LIMU, Zennoa, LIMU Blue Frog, Hiro Natural, TeMana, Lucim, Reviive, Puritii, and MaVie brands. It sells its products directly to customers, as well as through distributors, e-commerce sites, and direct-store-delivery systems. The company was formerly known as New Age Beverages Corporation and changed its name to NewAge, Inc. in July 2020. NewAge, Inc. was incorporated in 2010 and is headquartered in Denver, Colorado. On August 30, 2022, NewAge, Inc. along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About Boston Beer

(Get Rating)

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, and hard seltzers under the Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head, Angel City, Coney Island, Concrete Beach brand names. The company markets and sells its products to a network of approximately 400 wholesalers in the United States, as well as international 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 retail outlets. It also sells in 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.

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