Contrasting Boston Beer (NYSE:SAM) & Luckin Coffee (OTCMKTS:LKNCY)

Boston Beer (NYSE:SAM) and Luckin Coffee (OTCMKTS:LKNCY) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Boston Beer and Luckin Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Beer	-3.42%	9.99%	6.48%
Luckin Coffee	6.78%	24.91%	12.44%

Earnings & Valuation

This table compares Boston Beer and Luckin Coffee”s 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	0.89	$108.47 million	($6.79)	-26.21
Luckin Coffee	$7.03 billion	1.37	$513.88 million	$1.68	20.04

Luckin Coffee has higher revenue and earnings than Boston Beer. Boston Beer is trading at a lower price-to-earnings ratio than Luckin Coffee, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

81.1% of Boston Beer shares are owned by institutional investors. Comparatively, 0.5% of Luckin Coffee shares are owned by institutional investors. 27.4% of Boston Beer shares are owned by company insiders. Comparatively, 2.7% of Luckin Coffee shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Boston Beer and Luckin Coffee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Beer	2	9	1	0	1.92
Luckin Coffee	0	1	1	2	3.25

Boston Beer presently has a consensus target price of $205.09, indicating a potential upside of 15.24%. Luckin Coffee has a consensus target price of $46.87, indicating a potential upside of 39.19%. Given Luckin Coffee’s stronger consensus rating and higher possible upside, analysts clearly believe Luckin Coffee is more favorable than Boston Beer.

Risk and Volatility

Boston Beer has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Luckin Coffee has a beta of -0.34, indicating that its share price is 134% less volatile than the S&P 500.

Summary

Luckin Coffee beats Boston Beer on 11 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 Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.