Quick verdict: ABEV vs HSY in 2026

Ambev S.A. (ABEV) currently holds an overall edge based on a strong valuation and superior profitability margins. The Hershey Company (HSY), however, is the clear growth leader with positive revenue momentum and significantly higher analyst and DCF projected upside. While ABEV leads on several fundamental metrics, HSY is the analyst favorite with a positive price target. Not investment advice.

ABEV vs HSY: key metrics side by side

Full side-by-side comparison of ABEV and HSY across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

ABEV vs HSY valuation comparison

When considering ABEV vs HSY valuation, Ambev S.A. (ABEV) appears significantly cheaper based on traditional valuation multiples. ABEV trades at a P/E ratio of 16.65x, which is less than half of HSY’s P/E of 33.31x. Similarly, ABEV’s price-to-book (P/B) ratio stands at 2.88x, substantially lower than HSY’s 7.7x. This indicates that investors are paying a much lower premium for ABEV’s earnings and assets compared to The Hershey Company.

Despite ABEV’s lower multiples, HSY presents a higher implied upside according to discounted cash flow (DCF) models. HSY’s DCF suggests a potential upside of +123.5% from its current price, indicating significant undervaluation by this method. In contrast, ABEV’s DCF points to a +52.5% upside. While ABEV is cheaper on current earnings and book value, HSY’s future cash flow potential, as per DCF analysis, suggests a larger growth opportunity, although this assumes high future growth rates. Overall, ABEV is the clear choice for value investors focused on current multiples, while HSY could appeal to those believing in its long-term growth story reflected in its DCF.

ABEV vs HSY growth comparison

In terms of growth, The Hershey Company (HSY) demonstrates stronger momentum compared to Ambev S.A. (ABEV). HSY reported a positive revenue growth of +4.4% year-over-year, reflecting an expanding top line. This suggests robust demand for its confectionery products and effective market strategies. Such consistent growth is often attractive to investors seeking companies with increasing market presence and revenue generation capabilities, even if it comes with a higher valuation multiple.

Conversely, ABEV experienced a slight decline in revenue growth, posting -1.4% year-over-year. While this negative growth might raise concerns about its immediate market performance, it’s essential to consider the broader economic factors impacting its beverage markets. Despite the revenue contraction, ABEV maintains significantly higher net and EBITDA margins (17.66% and 31.98% respectively) than HSY (9.12% and 16.98%). This indicates that ABEV is more efficient at converting revenue into profit, even with a temporary dip in growth. However, for investors prioritizing revenue expansion and market momentum, HSY clearly has the stronger growth trajectory.

ABEV vs HSY profitability

Ambev S.A. (ABEV) demonstrates superior profitability metrics compared to The Hershey Company (HSY). ABEV boasts a net margin of 17.66%, nearly double HSY’s 9.12%. This indicates that ABEV is significantly more efficient at converting its revenue into net income, highlighting robust cost control and strong operational leverage within its business model. Furthermore, ABEV’s EBITDA margin stands at an impressive 31.98%, vastly outperforming HSY’s 16.98%, underscoring its ability to generate substantial earnings before interest, taxes, depreciation, and amortization.

Regarding return on equity (ROE), both companies currently report N/A%, so a direct comparison on this specific metric is not possible with the provided data. However, ABEV also generates more free cash flow relative to its enterprise value, with a FCF yield of 7.5% compared to HSY’s 5.83%. This stronger free cash flow generation for ABEV suggests it is more effective at producing cash that can be used for reinvestment, debt reduction, or shareholder returns. In summary, ABEV clearly generates more cash and demonstrates higher overall profitability.

Analyst ratings: ABEV vs HSY

Analyst sentiment shows a preference for The Hershey Company (HSY) over Ambev S.A. (ABEV). Of the 35 analysts covering HSY, 22.9% currently rate it a “Buy,” with a consensus target price of $221.5, representing a significant +20.7% upside from its current price. This positive outlook suggests that professional analysts see considerable potential for HSY’s stock to appreciate in the near to medium term, driven by its growth prospects and market position.

In contrast, ABEV has a lower proportion of “Buy” ratings from analysts. Out of 14 analysts, only 14.3% recommend buying ABEV stock. The consensus target price for ABEV is $3.01, which actually implies a -10.1% downside from its current trading price. While both companies have a “Hold” consensus overall, the substantial positive price target upside for HSY indicates a stronger conviction among analysts regarding its future performance. Therefore, analysts clearly prefer HSY based on their current price targets and buy recommendations.

Should I buy ABEV or HSY stock in 2026?

For growth investors looking for stronger top-line expansion and potential future upside, The Hershey Company (HSY) might be the more appealing option. HSY demonstrates positive revenue growth of +4.4% year-over-year and has a robust DCF upside of +123.5%. Analysts also lean towards HSY, with a higher percentage of “Buy” ratings and a consensus price target indicating a +20.7% upside, making it a compelling choice for those prioritizing growth and future appreciation.

Value investors, on the other hand, might find Ambev S.A. (ABEV) more attractive. ABEV trades at a significantly lower P/E ratio of 16.65x compared to HSY’s 33.31x, and a lower P/B ratio of 2.88x versus HSY’s 7.7x. This indicates a more favorable valuation for ABEV based on current earnings and assets. Additionally, ABEV boasts superior net margins (17.66% vs 9.12%) and EBITDA margins (31.98% vs 16.98%), showcasing its operational efficiency and robust profitability, which are key indicators for value-focused investors.

When considering income, ABEV offers a higher dividend yield of 0.1% compared to HSY’s 0.03%. While neither company offers a substantial yield, ABEV’s dividend is comparatively more generous, making it slightly more attractive for investors seeking some form of income generation alongside potential capital appreciation. This is not investment advice; always conduct thorough personal research and consider your own financial goals.

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