WallStSmart

Ambev SA ADR (ABEV)vsAT&T Inc (T)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AT&T Inc generates 42% more annual revenue ($125.65B vs $88.24B). ABEV leads profitability with a 17.6% profit margin vs 17.5%. T appears more attractively valued with a PEG of 1.60. T earns a higher WallStSmart Score of 63/100 (C+).

ABEV

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

T

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVSignificantly Overvalued (-136.4%)

Margin of Safety

-136.4%

Fair Value

$1.29

Current Price

$2.85

$1.56 premium

UndervaluedFair: $1.29Overvalued
TSignificantly Overvalued (-39.7%)

Margin of Safety

-39.7%

Fair Value

$20.67

Current Price

$28.81

$8.14 premium

UndervaluedFair: $20.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV4 strengths · Avg: 8.5/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

T4 strengths · Avg: 9.0/10
Market CapQuality
$204.67B10/10

Mega-cap, among the largest globally

P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$4.54B8/10

Generating 4.5B in free cash flow

Areas to Watch

ABEV3 concerns · Avg: 2.7/10
PEG RatioValuation
2.024/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.2%2/10

Revenue declined 8.2%

EPS GrowthGrowth
-10.1%2/10

Earnings declined 10.1%

T3 concerns · Avg: 3.3/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

EPS GrowthGrowth
-5.6%2/10

Earnings declined 5.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, P/E Ratio, Price/Book. Profitability is solid with margins at 17.6% and operating margin at 28.2%.

Bull Case : T

The strongest argument for T centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.5% and operating margin at 18.4%.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : T

The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

ABEV profiles as a declining stock while T is a value play — different risk/reward profiles.

T carries more volatility with a beta of 0.58 — expect wider price swings.

T is growing revenue faster at 3.6% — sustainability is the question.

ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.

Bottom Line

T scores higher overall (63/100 vs 55/100), backed by strong 17.5% margins. Both earn "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.

AT&T Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.

Want to dig deeper into these stocks?