STZ vs SAM

For growth investors, The Boston Beer Company, Inc.

(SAM) is the stronger pick with 3. 7% revenue growth year-over-year, versus 2. 5% for Constellation Brands, Inc. (STZ). The Boston Beer Company, Inc. (SAM) offers the better valuation at 20. 9x trailing P/E (20. 9x forward), making it the more compelling value choice. Analysts rate Constellation Brands, Inc. (STZ) a "Buy" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Constellation Brands, Inc.

is actually cheaper at 12. 9x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Constellation Brands, Inc.

(STZ) delivered a total return of -29. 4%, compared to -81. 4% for The Boston Beer Company, Inc. (SAM). Over 10 years, the gap is even starker: SAM returned +33. 8% versus STZ's +15. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Constellation Brands, Inc.

(STZ) is the lower-risk stock at 0. 26β versus The Boston Beer Company, Inc. 's 0. 29β — meaning SAM is approximately 12% more volatile than STZ relative to the S&P 500. On balance sheet safety, The Boston Beer Company, Inc. (SAM) carries a lower debt/equity ratio of 4% versus 170% for Constellation Brands, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Boston Beer Company, Inc.

(SAM) is pulling ahead at 3. 7% versus 2. 5% for Constellation Brands, Inc. (STZ). On earnings-per-share growth, the picture is similar: The Boston Beer Company, Inc. grew EPS 95. 5% year-over-year, compared to -104. 8% for Constellation Brands, Inc.. Over a 3-year CAGR, STZ leads at 5. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Boston Beer Company, Inc.

(SAM) is the more profitable company, earning 5. 2% net margin versus -0. 8% for Constellation Brands, Inc. — meaning it keeps 5. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STZ leads at 35. 5% versus 6. 9% for SAM. At the gross margin level — before operating expenses — STZ leads at 51. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Constellation Brands, Inc.

(STZ) trades at 12. 9x forward P/E versus 20. 9x for The Boston Beer Company, Inc. — 8. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SAM: 19. 6% to $246. 86.

In this comparison, STZ (2.

6% yield) pays a dividend. SAM does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Constellation Brands, Inc.

(STZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 26), 2. 6% yield). Both have compounded well over 10 years (STZ: +15. 2%, SAM: +33. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

STZ pays a dividend while SAM does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.