WallStSmart

Ambev SA ADR (ABEV)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 22% more annual revenue ($107.70B vs $88.27B). ABEV leads profitability with a 18.4% profit margin vs 4.1%. ABEV appears more attractively valued with a PEG of 1.87. ABEV earns a higher WallStSmart Score of 67/100 (B-).

ABEV

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.0Value: 7.3Quality: 7.5
Piotroski: 6/9Altman Z: 2.14

TGT

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.0Value: 6.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+70.6%)

Margin of Safety

+70.6%

Fair Value

$10.39

Current Price

$3.02

$7.37 discount

UndervaluedFair: $10.39Overvalued
TGTUndervalued (+5.3%)

Margin of Safety

+5.3%

Fair Value

$120.98

Current Price

$155.83

$34.85 discount

UndervaluedFair: $120.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV6 strengths · Avg: 8.3/10
Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

EPS GrowthGrowth
24.6%8/10

Earnings expanding 24.6% YoY

Free Cash FlowQuality
$3.83B8/10

Generating 3.8B in free cash flow

TGT5 strengths · Avg: 8.8/10
EPS GrowthGrowth
100.5%10/10

Earnings expanding 100.5% YoY

Market CapQuality
$70.79B9/10

Large-cap with strong market position

Return on EquityProfitability
24.6%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.43B8/10

Generating 2.4B in free cash flow

Areas to Watch

ABEV2 concerns · Avg: 4.0/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

TGT4 concerns · Avg: 3.3/10
PEG RatioValuation
1.944/10

Expensive relative to growth rate

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Debt/EquityHealth
1.053/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Debt/Equity, P/E Ratio, Price/Book. Profitability is solid with margins at 18.4% and operating margin at 23.7%.

Bull Case : TGT

The strongest argument for TGT centers on EPS Growth, Market Cap, Return on Equity.

Bear Case : ABEV

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

Bear Case : TGT

The primary concerns for TGT are PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

TGT carries more volatility with a beta of 0.99 — expect wider price swings.

TGT is growing revenue faster at 5.3% — sustainability is the question.

ABEV generates stronger free cash flow (3.8B), providing more financial flexibility.

Monitor BEVERAGES - BREWERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ABEV scores higher overall (67/100 vs 66/100), backed by strong 18.4% margins. Both earn "Strong Buy" and "Strong 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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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