Wags point out that investing in alcohol producers -- wineries, distilleries, brewers, and distributors -- is a safe bet during recessions, when people need to alleviate higher levels of stress.
Although alcohol isn't recession-proof -- higher-end drinks and point-of-sale trends are down -- alcohol usually proves itself to be a steady grower.
Getting into the numbers
Who are the major alcohol companies, and how do they stack up to one another?
|
Company |
Market Cap (in Millions) |
Revenue, LTM (in Millions) |
Free Cash Flow, LTM (in Millions) |
CAPS Rating (out of 5) |
|---|---|---|---|---|
|
Anheuser-Busch InBev (NYSE: BUD) |
$77,351 |
$36,888 |
$7,411 |
*** |
|
AmBev (NYSE: ABV) |
$62,532 |
$13,064 |
$4,270 |
**** |
|
Diageo (NYSE: DEO) |
$39,813 |
$13,729 |
$2,929 |
***** |
|
Brown Forman (NYSE: BF-B) |
$8,687 |
$2,444 |
$544 |
**** |
|
Molson Coors (NYSE: TAP) |
$8,100 |
$3,134 |
$777 |
***** |
|
Constellation Brands (NYSE: STZ) |
$3,553 |
$3,365 |
$295 |
*** |
Data from Capital IQ, a division of Standard & Poor’s, and the Motley Fool CAPS database.
*2009 Q4 results.
It's important to keep track of revenue, but free cash flow gives us a better sense of what the company is doing with that revenue -- and whether it'll have the funds to invest in the business later.
Which alcohol company do you like, and why? Let us know in the comments.
