AB InBev vs. Boston Beer: Which Stock is Poised to Brew a Better Return?

In a fast-evolving beverage environment, Anheuser-Busch InBev SA/NV BUD, alias AB InBev, and The Boston Beer Company, Inc. SAM stand out as two uniquely positioned players vying for a larger share in the alcohol beverage dominance. Both companies operate in the high-demand and evolving consumers’ lifestyle trends in the global alcoholic beverage market. While AB InBev is a global brewing titan, Boston Beer remains a U.S. craft and beyond-beer heavyweight. While the two companies share similarities in being renowned alcoholic beverage firms, their core business models, market reach and growth strategies diverge significantly.BUD dominates the brewer space with its expansive sourcing and distribution network, key focus on premiumization, digital revolution and consistent investment in brand equity. In contrast, SAM leverages its rich craft heritage to build brand loyalty and aid premium growth. So, which of these two brewer giants is better positioned for long-term growth and which stock looks more compelling right now? Let us take a closer look.The Case for BUDAB InBev continues to strengthen its leadership position in the global brewing industry. With an unrivaled global foothold, the company has the most comprehensive and diverse beverage offerings in the brewing industry. It has an iconic portfolio of more than 500 brands, spanning more than 150 countries. AB InBev’s globally integrated model leverages the advantages of scale while maintaining the agility to local market dynamics. In first-quarter 2025, revenues of $13.6 billion dipped 6.3% year over year. However, the company registered organic revenue growth of 1.5%, led by revenue growth in 50% of its markets. Growth across markets was driven by a focus on ongoing premiumization and disciplined revenue management, contributing to higher revenue per hectoliter (hl). Revenues per hl improved 3.7% year over year in the quarter, backed by revenue-management initiatives.BUD’s three global power brands, including Budweiser, Stella Artois and Corona, are celebrated for their rich heritage, premium quality and cultural relevance that resonate with beer enthusiasts around the globe. Megabrands revenues increased 4.4%, again led by strong performance in the Corona brand.As Beyond Beer’s consumer demand is rising, BUD has been focused on expanding its Beyond Beer portfolio from spirits-based ready-to-drink (RTD) cocktails to malt-based RTDs, flavored beverages, hard seltzers and spritzers. The Beyond Beer portfolio recorded a 16.6% revenue rise in first-quarter 2025, driven by double-digit growth in key brands such as Cutwater and Nütrl in the United States, and Beats in Brazil. AB InBev is making investments in digital transformation, with rapid growth in its digital platform, including BEES and Zé Delivery. BUD’s digital transformation initiatives have been on track, with B2B digital platforms contributing about 72% to its revenues in the first quarter.With a growing emphasis on higher-margin products and innovative offerings like zero-sugar beer variants, AB InBev is capturing evolving consumer preferences and delivering strong margin performance across key regions. Backed by a solid focus on accelerating its premium beer portfolio and expanding into high-potential beyond-beer categories, including hard seltzers and canned cocktails, as well as digital transformation, AB InBev is well-positioned for growth, also aiming year-over-year EBITDA growth of 4-8% in 2025.The Case for SAMBoston Beer, a legacy U.S. craft brewer, has carved out a niche for itself, built on a foundation of quality, authenticity and innovation. While rooted in craft beer heritage, the company has successfully evolved from a pioneering craft brewery into a dynamic beverage leader, offering a diverse portfolio spanning beer, cider, flavored malt beverages and hard seltzers.Among the most iconic brands in American craft brewing, Samuel Adams is the keystone of Boston Beer. However, the brand has remained challenged for a while owing to a dynamic craft beer industry, evolving consumer trends and sluggish growth. This may limit the brand’s appeal among younger or more niche craft-beer enthusiasts. As such, Boston Beer remains committed to a strategic growth plan centered on strengthening its Samuel Adams and Angry Orchard brands, implementing cost-saving initiatives and investing in forward-looking innovations. American Light is helping the company’s Samuel Adams brand gain shelf space, while craft beer shelf space continues to shrink.On a broader level, Boston Beer has diversified its lineup with beverages like Truly Hard Seltzer and has grown beyond traditional beer. SAM’s diversification strategy centers on expanding its “Beyond Beer” portfolio, including hard seltzers, ciders and other alternative alcoholic beverages, to capitalize on the evolving consumer taste, reducing reliance on the traditional beer segment. It actively makes innovation in alcoholic beverages, including high-profile collaborations like Hard Mountain Dew.In first-quarter 2025, Boston Beer’s net revenues increased 6.5% on higher pricing and volume gains. It reported a 5.3% year-over-year increase in the shipment volume to 1.7 million barrels in the first quarter, mainly resulting from higher shipments in Sun Cruiser, Hard Mountain Dew and Twisted Tea brands, partly negated by declines in Truly brand. However, depletions fell 1% year over year.Management estimates tariffs to attract unfavorable cost impacts of $20-$30 million in 2025, equating to a reduction of $1.25-$1.90 in earnings per share. This includes an estimated gross margin headwind of 50-100 basis points. Depletions and shipments are expected to be down in the low-single digits to up in the low-single digits for 2025.How Do Estimates Compare for BUD & SAM?The Zacks Consensus Estimate for AB InBev’s 2025 sales and EPS implies year-over-year growth of 1.7% and 2.3%, respectively. EPS estimates have moved southward in the past 30 days. BUD’s annual sales and earnings are slated to increase 4.3% and 10.3% year over year, respectively, in 2026.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Boston Beer’s 2025 sales a year-over-year rise of 2.1% while EPS is likely to decline 3%. EPS estimates have been unchanged in the past 30 days. SAM’s annual sales and earnings are slated to increase 2.4% and 22.1% year over year, respectively, in 2026.Image Source: Zacks Investment ResearchThis clearly illustrates that AB InBev has a slight edge over SAM. Estimates for BUD indicate year-over-year increases in sales and earnings for the current year, while SAM’s estimates suggest a year-over-year decline in EPS.Price Performance & Valuation of BUD & SAMIn the past three months, BUD stock had the edge in terms of performance, having recorded a total return of 13.9%. This has noticeably outpaced the benchmark S&P 500’s return of 5.9% and SAM’s 11.4% decrease.3 Months Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation perspective, AB InBev trades at a forward price-to-earnings (P/E) multiple of 18.75X, which is above its five-year median of 17.69X. However, BUD stock trades below SAM’s forward 12-month P/E multiple of 19.98X and a five-year median of 32.25X.Image Source: Zacks Investment ResearchAB InBev’s valuation is comparatively cheaper. The company is benefiting from strong momentum in high-growth brands like Budweiser, Stella Artois and Corona, which are delivering solid revenue gains and expanding market share. With a diversified global footprint, digital transformation and a clear strategic roadmap, the company’s valuation suggests upside potential.SAM stock seems pricey. Its focus on repositioning itself to be more competitive and drive sustainable, profitable long-term growth appears encouraging. However, the ongoing challenges, including sluggish Samuel Adams label, declining craft beer shelf space and tariff headwinds, raise doubts about whether its premium valuation is sustainable.ConclusionAB InBev emerges as the stronger investment case, thanks to its solid stock performance, attractive valuation and clear growth trajectory. While both companies are exposed to the same broader beverage market, BUD’s scale, global distribution network and diversified portfolio give it a competitive edge. Its ability to maintain stability, meaningful product innovations, expansion beyond beer categories, and leverage technology position it well for continued momentum.Moreover, BUD’s consistent earnings potential and growth initiatives reflect a business model that aligns with investor optimism. From sturdy operational execution to adaptability to evolving consumer trends, the company demonstrates resilience and discipline in a dynamic operating landscape. On the other hand, SAM offers a long-term promise with its diversification strategy and repositioning efforts.In this face-off, AB InBev does not just hold its ground; it takes the lead as the more attractive stock pick for investors looking for a blend of value and growth potential. AB InBev currently carries a Zacks Rank #3 (Hold), whereas Boston Beer has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Anheuser-Busch InBev SA/NV (BUD): Free Stock Analysis Report The Boston Beer Company, Inc. (SAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks