Quick verdict: ABEV vs KR in 2026

In this comprehensive ABEV vs KR stock comparison 2026, Ambev S.A. (ABEV) shows an overall edge in fundamental strength, leading on 7 of 12 comparable metrics, particularly in profitability and traditional valuation multiples. The Kroger Co. (KR), however, takes the lead in recent revenue growth momentum and offers a higher analyst-predicted upside according to current targets and DCF models. ABEV emerges as the clear leader in profitability and value, while KR gains favor with analysts and indicates stronger growth potential, albeit from a lower margin base. Not investment advice.

ABEV vs KR: key metrics side by side

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

ABEV vs KR valuation comparison

When assessing the ABEV vs KR valuation, Ambev S.A. (ABEV) presents a significantly more attractive profile based on traditional multiples. ABEV trades at a P/E ratio of 16.65x, which is considerably lower than Kroger’s (KR) P/E of 40.8x. This suggests that investors are paying a much higher premium for each dollar of Kroger’s earnings compared to Ambev’s. Similarly, ABEV’s Price-to-Book (P/B) ratio stands at 2.88x, while KR’s is substantially higher at 6.99x, further reinforcing ABEV’s position as the cheaper stock in terms of asset valuation.

Despite ABEV appearing cheaper on conventional metrics, a Discounted Cash Flow (DCF) analysis tells a slightly different story regarding potential upside. ABEV’s DCF model suggests an upside of +52.5% to $5.11 from its current price of $3.35. In contrast, KR’s DCF indicates a higher potential upside of +72.7% to $113.81 from its current price of $65.91. While KR has a higher implied DCF upside, investors must weigh this against its elevated P/E and P/B ratios, which suggest that much of its future growth may already be priced into the stock. Therefore, for investors prioritizing a lower entry multiple, ABEV stands out in this ABEV vs KR fundamentals and valuation review.

ABEV vs KR growth comparison

In terms of recent top-line expansion, The Kroger Co. (KR) demonstrates stronger, albeit modest, revenue growth compared to Ambev S.A. (ABEV). KR recorded a year-over-year revenue growth of +0.4%, reaching $147.64 billion. This positive growth, even if slight, indicates some operational momentum. Conversely, ABEV experienced a slight contraction, with its revenue growth reported at -1.4%, bringing its total revenue to $88.24 billion. This difference suggests that KR has managed to expand its sales base over the last year, while ABEV faced headwinds in maintaining its revenue levels.

While KR shows positive revenue growth, it’s crucial to consider the broader context of profitability, as sustained growth often requires healthy margins. However, based solely on the provided revenue growth figures, KR exhibits stronger momentum in expanding its market reach or customer base, securing a win in this specific metric. Investors focused on top-line expansion and market penetration would likely find KR’s performance more appealing in this ABEV vs KR stock comparison 2026, despite ABEV’s significantly superior profitability margins, which will be discussed in the next section.

ABEV vs KR profitability

The profitability comparison between ABEV and KR reveals a stark difference, with Ambev S.A. (ABEV) demonstrating vastly superior margins. ABEV boasts an impressive net margin of 17.66%, indicating that a significant portion of its revenue translates into profit. This is in sharp contrast to The Kroger Co. (KR), which has a net margin of just 0.69%. This substantial disparity means ABEV is far more efficient at converting sales into earnings, reflecting its strong pricing power and cost management within the beverage industry.

Further highlighting ABEV’s commanding lead in profitability, its EBITDA margin stands at 31.98%, significantly higher than KR’s 5.79%. This metric underscores ABEV’s operational efficiency before accounting for depreciation, amortization, interest, and taxes. While both companies have N/A% for Return on Equity (ROE), making a direct comparison impossible for this specific measure, ABEV’s superior net and EBITDA margins clearly show it generates substantially more cash and profit from its operations. However, KR edges out ABEV in Free Cash Flow (FCF) yield, with 8.46% compared to ABEV’s 7.5%. Despite KR’s slightly better FCF yield, ABEV remains the undisputed leader in overall profitability and margin strength, indicating a more financially robust business model.

Analyst ratings: ABEV vs KR

When examining analyst sentiment, The Kroger Co. (KR) appears to be the preferred choice among professional forecasters compared to Ambev S.A. (ABEV). Out of 44 analysts covering KR, a substantial 47.7% have issued a “Buy” rating, contributing to a consensus rating of “Buy” for the stock. Furthermore, analysts have set a consensus price target of $74.75 for KR, which represents a positive upside of +13.4% from its current price of $65.91. This strong endorsement suggests confidence in KR’s future performance and growth prospects, offering a positive outlook for those wondering should I buy ABEV or KR stock 2026.

In contrast, ABEV receives a more cautious outlook from analysts. Of the 14 analysts covering Ambev S.A., only 14.3% recommend a “Buy,” leading to an overall “Hold” consensus. The analyst consensus price target for ABEV is $3.01, which actually implies a downside of -10.1% from its current price of $3.35. While ABEV does hold a higher FMP (Financial Modeling Prep) rating of ‘A’ compared to KR’s ‘B-‘, the lack of conviction from a broader analyst pool and the negative price target upside indicate that the Street views KR as having better short-to-medium-term potential.

Should I buy ABEV or KR stock in 2026?

Deciding whether you should buy ABEV or KR stock in 2026 depends heavily on your investment priorities and risk tolerance. For growth-oriented investors, The Kroger Co. (KR) might present a more compelling argument. KR currently boasts positive revenue growth of +0.4% year-over-year, whereas ABEV saw a -1.4% decline. Furthermore, KR has a significantly higher analyst buy rating percentage at 47.7% and a positive price target upside of +13.4%, alongside a DCF upside of +72.7%. These indicators suggest that analysts and valuation models see more growth potential in KR, making it potentially more appealing for those seeking upward momentum.

Conversely, value investors, who prioritize cheaper entry points and robust fundamental metrics, may find Ambev S.A. (ABEV) to be the better option. ABEV trades at a much lower P/E ratio of 16.65x compared to KR’s 40.8x, and a P/B ratio of 2.88x versus KR’s 6.99x. This significant valuation discount, combined with ABEV’s exceptionally strong net margin of 17.66% and EBITDA margin of 31.98% (vastly outperforming KR’s 0.69% and 5.79% respectively), positions ABEV as a fundamentally solid, highly profitable enterprise. ABEV’s conservative debt-to-equity ratio of 0.03x also signals superior financial health.

For income-focused investors looking at dividend yields, ABEV also holds an edge. Ambev offers a dividend yield of 0.1%, which, while modest, is still higher than Kroger’s 0.02%. Considering the ABEV vs KR fundamentals and valuation, ABEV appears to be a strong candidate for those seeking value, profitability, and a modest income stream, even with its recent revenue decline. KR, on the other hand, offers more optimistic growth projections and analyst sentiment. This is not investment advice; always conduct your own thorough research.

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