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ABEV vs KR

ABEV
Ambev S.A.
NEUTRAL
Price
$2.78
Market Cap
$43.65B
Sector
Consumer Defensive
AI Confidence
65%
KR
The Kroger Co.
NEUTRAL
Price
$66.93
Market Cap
$42.36B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
ABEV
13.9
KR
43.46
Forward P/E
ABEV
14.55
KR
11.9
P/B Ratio
ABEV
2.49
KR
7.23
P/S Ratio
ABEV
0.48
KR
0.29
EV/EBITDA
ABEV
1.01
KR
9.24

Profitability

Gross Margin
ABEV
51.77%
KR
24.1%
Operating Margin
ABEV
26.01%
KR
3.44%
Profit Margin
ABEV
17.73%
KR
0.69%
ROE
ABEV
17.21%
KR
14.41%
ROA
ABEV
9.98%
KR
5.76%

Growth

Revenue Growth
ABEV
-5.7%
KR
1.2%
Earnings Growth
ABEV
38.4%
KR
50.9%

Financial Health

Debt/Equity
ABEV
0.03
KR
4.16
Current Ratio
ABEV
1.15
KR
0.8
Quick Ratio
ABEV
0.79
KR
0.3

Dividends

Dividend Yield
ABEV
11.34%
KR
2.09%
Payout Ratio
ABEV
104.3%
KR
87.01%

AI Verdict

ABEV NEUTRAL

ABEV's deterministic health score is weak with a Piotroski F-Score of 4/9, indicating marginal financial stability. The stock trades above the Graham Number of $2.24 at a current price of $2.78, suggesting modest overvaluation for a defensive stock, though below the growth-based intrinsic value of $5.9. Strong profitability metrics like a 17.73% profit margin and 26.01% operating margin are offset by declining revenue growth of -5.70% YoY and a concerning 104.3% dividend payout ratio. Analysts rate it a 'hold' with a $2.93 target, implying limited upside.

Strengths
High dividend yield of 11.34% offers strong income appeal
Exceptional profitability with gross margin of 51.77% and ROE of 17.21%
Very low debt/equity ratio of 0.03 indicates minimal leverage risk
Risks
Piotroski F-Score of 4 suggests weak financial health and inconsistent performance
Revenue declining YoY by -5.70%, indicating top-line pressure
Dividend payout ratio of 104.3% is unsustainable long-term
KR NEUTRAL

The Kroger Co. presents a dichotomy between strong operational execution and deteriorating financial health. While the company maintains a stellar earnings beat record and strong YoY earnings growth (50.9%), its deterministic health is only 'Stable' with a Piotroski F-Score of 4/9. Valuation is a primary concern, as the current price of $66.93 significantly exceeds both the Graham Number ($17.90) and the growth-based Intrinsic Value ($45.43). High leverage (Debt/Equity 4.16) and poor liquidity (Current Ratio 0.80) offset the bullish analyst sentiment.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong YoY earnings growth of 50.90%
Low Price-to-Sales ratio (0.29) typical of high-volume grocery efficiency
Risks
Excessive leverage with a Debt/Equity ratio of 4.16
Liquidity risk indicated by a Current Ratio of 0.80 and Quick Ratio of 0.30
Unsustainable dividend payout ratio of 87.01%

Compare Another Pair

ABEV vs KR: Head-to-Head Comparison

This page compares Ambev S.A. (ABEV) and The Kroger Co. (KR) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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