Ambev SA ADR (ABEV)vsRoyal Bank of Canada (RY)
ABEV
Ambev SA ADR
$3.29
+0.30%
CONSUMER DEFENSIVE · Cap: $53.50B
RY
Royal Bank of Canada
$181.68
+0.18%
FINANCIAL SERVICES · Cap: $252.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Ambev SA ADR generates 39% more annual revenue ($88.21B vs $63.42B). RY leads profitability with a 33.1% profit margin vs 17.7%. RY appears more attractively valued with a PEG of 2.30. RY earns a higher WallStSmart Score of 68/100 (B-).
ABEV
Buy57
out of 100
Grade: C
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.4%
Fair Value
$11.91
Current Price
$3.29
$8.62 discount
Intrinsic value data unavailable for RY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 11.6B in free cash flow
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 26.5%
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
2.2% earnings growth
Revenue declined 0.1%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ABEV
The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
Bear Case : ABEV
The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
ABEV profiles as a declining stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.94 — expect wider price swings.
RY is growing revenue faster at 7.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 57/100), backed by strong 33.1% margins. ABEV offers better value entry with a 74.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ambev SA ADR
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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