The beer industry is home to some of the world’s most recognizable brands, including three of its largest: Anheuser-Busch InBev (BUD), Molson Coors (TAP), and Boston Beer Company (SAM). Over 60% of Americans say they drink alcohol, so beer is big business. Beer drinkers are famous for having their particular favorites for every occasion, but which beer stock looks most likely to hit the spot with investors right now?
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Anheuser-Busch InBev SA/NV (NYSE:BUD) | The King of Beers
Anheuser-Busch InBev was formed when Belgium’s InBev acquired U.S.-based Anheuser-Busch in 2008. Today, the company boasts a market cap of $118 billion and has affirmed itself as the largest brewer in the world and by far the largest company in this comparison.
The company’s portfolio features many popular beers, including Budweiser, Bud Light, Stella Artois, Michelob Ultra, Kona, and Goose Island. It also sells the popular Modelo and Corona brands overseas. The company has also branched out into other types of alcoholic beverages with brands like Cutwater and Nutrl. In 2024, BUD brought in $59.8 billion in sales, up slightly from $59.4 billion in 2023.
Shares of BUD are inexpensive, trading at just 16.2x consensus forward earnings estimates. This places BUD squarely in value stock territory as it trades at about two-thirds of the S&P 500’s (SPX) valuation, which currently trades for roughly 24x earnings. Since BUD also has about $69 billion in long-term debt, it’s worth looking at the company’s enterprise value to EBITDA (earnings before interest, taxes, debt, and amortization), currently at a reasonable multiple of 9.9.
In addition to being a value stock, BUD is also a dividend stock. However, its dividend yield of 1.08% isn’t much to write home about and is just slightly lower than that of the S&P 500, which currently yields 1.3%. However, the company is also rewarding its shareholders with share repurchases—it has bought back $750 million worth of shares since announcing a $2 billion buyback program in October 2024.
Is Anheuser-Busch InBev (BUD) Stock a Good Buy Now?
Wall Street analysts are generally bullish on BUD stock. BUD earns a Strong Buy consensus rating based on three Buys, one Hold, and zero Sell ratings assigned in the past three months. The average analyst BUD stock price target of $68.25 per share implies a 14% upside potential from current levels.
Anheuser-Busch Inbev Sa (BUD) stock forecast for the next 12 months including a high, average, and low price target
Molson Coors Beverage Company (NYSE:TAP) | Budweiser’s Greatest Challenger
Molson Coors Beverage Company was formed through the 2005 merger of Canada’s Molson and U.S.-based Coors. In 2016, the company acquired Miller Brewing Company for $12 billion, making it the world’s third-largest brewing company. Today, the company has a market cap of $12.4 billion and has household-name brands such as Coors, Molson, Miller, Blue Moon, Carling, and Foster’s.
In 2024, the company registered $11.6 billion in sales, a slight 0.6% decline from the $11.7 billion it had brought in in 2023. Molson Coors management attributes the marginal decline to macro-driven consumer softness in the peak sales months of July and August and the end of its contract brewing operations for Pabst, another beer brand.
Shares of Molson Coors are remarkably cheap, trading at a price-to-earnings multiple of just 9.7x forward earnings estimates. This single-digit valuation means that Molson Coors is significantly more affordable than BUD. Like BUD, TAP has debt but looks cheap, with an EV/EBITDA multiple of 7.3.
TAP is also a dividend stock with an attractive 3.1% dividend yield, more than double the dividend yield of BUD and the S&P 500. In addition to its dividend, TAP returns capital to shareholders via share buybacks. Since announcing its share repurchase program in the fourth quarter of 2023, the company has spent about $790 million to repurchase 13.4 million shares, reducing its share count by about 6.7%.
Is Molson Coors (TAP) a Good Stock to Buy?
On Wall Street, TAP earns a Moderate Buy consensus rating based on six Buys, nine Holds, and one Sell rating assigned in the past three months. The average analyst TAP price target of $65.07 per share implies a 6.2% upside potential from current levels.
Molson Coors (TAP) stock forecast for the next 12 months including a high, average, and low price target
Boston Beer Company (NYSE:SAM) | Small But Valuable Up-and-Comer
As the smallest company in today’s comparison, Boston Beer Company (SAM) has a meager market cap of just $2.7 billion and is therefore dwarfed by its larger peers. However, SAM remains the fourth-largest brewer in the U.S., including brands such as Sam Adams and Dogfish Head. The up-and-comer has expanded beyond beer with other popular alcoholic drinks like Twisted Tea, Angry Orchard, and Truly. The Boston-based company pulled in $2 billion in 2024 sales.
While Boston Beer is a great American success story, its shares have become a bit pricey at this point, trading at 23.8x earnings, in line with the broader market. This seems a bit pricey for a company not exhibiting much revenue growth at this point. It also makes Boston Beer Company significantly more expensive than both BUD and TAP.
However, SAM stock has very little debt as a unique selling point, so its EV/EBITDA multiple of 10.2 places it more in line with BUD, but it is still more expensive than TAP.
My other qualm about Boston Beer Company is that it does not pay dividends, meaning it’s not an ideal option for income investors, putting it at a disadvantage to BUD and TAP. However, it should be noted that, like its larger competitors, Boston Beer Company is buying back shares, repurchasing $293 million in 2024, which is no small feat for a company with a $2.7 billion market cap.
Is Boston Beer Company (SAM) a Good Stock to Buy?
Wall Street analysts have collectively assigned SAM a Hold consensus rating based on one Buy, nine Holds, and one Sell rating assigned in the past three months. The average analyst SAM stock price target of $275.50 per share implies a 13% upside potential from current levels.
Boston Beer (SAM) stock forecast for the next 12 months including a high, average, and low price target
Molson Coors Stands Tall as the King of Beers for Investment Purposes
All three companies boast strong beer portfolios enjoyed by millions across the U.S. and worldwide. However, only one can come out on top in this comparison.
While I appreciate Sam Adams and its seasonal varieties, the stock trades at the highest valuation in this group despite minimal revenue growth over the past year. Additionally, it doesn’t pay dividends like its competitors, so I’m ruling it out.
TAP saw only a slight revenue decline in 2024, while BUD’s growth wasn’t awe-inspiring either. TAP, however, is significantly cheaper than BUD and offers a dividend yield nearly twice as high. That makes it the clear winner of this boozy showdown—an attractive choice for both value and income investors.
