Head-To-Head Survey: Long Island Iced Tea Corp. (LTEA) & Coca-Cola Company (The) (KO)

Long Island Iced Tea Corp. (NASDAQ: LTEA) and Coca-Cola Company (The) (NYSE:KO) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Dividends

Coca-Cola Company (The) pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. Long Island Iced Tea Corp. does not pay a dividend. Coca-Cola Company (The) pays out 154.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Coca-Cola Company (The) has raised its dividend for 54 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Long Island Iced Tea Corp. and Coca-Cola Company (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Long Island Iced Tea Corp. 0 0 0 0 N/A
Coca-Cola Company (The) 2 13 6 0 2.19

Coca-Cola Company (The) has a consensus target price of $45.45, indicating a potential downside of 1.58%. Given Coca-Cola Company (The)’s higher probable upside, analysts plainly believe Coca-Cola Company (The) is more favorable than Long Island Iced Tea Corp..

Volatility and Risk

Long Island Iced Tea Corp. has a beta of -10.56, suggesting that its stock price is 1,156% less volatile than the S&P 500. Comparatively, Coca-Cola Company (The) has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

1.1% of Long Island Iced Tea Corp. shares are held by institutional investors. Comparatively, 64.7% of Coca-Cola Company (The) shares are held by institutional investors. 18.1% of Long Island Iced Tea Corp. shares are held by insiders. Comparatively, 1.5% of Coca-Cola Company (The) shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Long Island Iced Tea Corp. and Coca-Cola Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Long Island Iced Tea Corp. -305.26% -349.13% -202.48%
Coca-Cola Company (The) 10.68% 34.53% 8.99%

Valuation & Earnings

This table compares Long Island Iced Tea Corp. and Coca-Cola Company (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Long Island Iced Tea Corp. $4.79 million 5.42 -$11.97 million ($1.90) -1.50
Coca-Cola Company (The) $38.86 billion 5.07 $10.89 billion $0.96 48.10

Coca-Cola Company (The) has higher revenue and earnings than Long Island Iced Tea Corp.. Long Island Iced Tea Corp. is trading at a lower price-to-earnings ratio than Coca-Cola Company (The), indicating that it is currently the more affordable of the two stocks.

Summary

Coca-Cola Company (The) beats Long Island Iced Tea Corp. on 12 of the 15 factors compared between the two stocks.

Long Island Iced Tea Corp. Company Profile

Long Island Iced Tea Corp. is a holding company operating through its subsidiary, Long Island Brand Beverages, LLC (LIBB). The Company is engaged in the production and distribution of Non-Alcoholic Ready-to-Drink (NARTD) iced tea in the beverage industry. It is organized around its brand, Long Island Iced Tea. Long Island Iced Tea is sold primarily on the East Coast of the United States through a network of national and regional retail chains and distributors. The Company produces brewed tea, using black tea leaves, purified water and natural cane sugar or sucralose. The Company’s Long Island Iced Tea’s flavors include lemon, peach, raspberry, guava, mango, diet lemon, diet peach, sweet tea, green tea and honey, and half tea and half lemonade. It also offers lower calorie iced tea in over 12 ounce bottles. The lower calorie flavor options include mango, raspberry and peach. The Company’s products include All-Natural Tea, Diet Tea, Fruit-Flavored Tea, Organic Tea and Herbal Tea.

Coca-Cola Company (The) Company Profile

The Coca-Cola Company is a beverage company. The Company owns or licenses and markets non-alcoholic beverage brands, primarily sparkling beverages and a range of still beverages, such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy and energy drinks. The Company’s segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate. The Company owns and markets a range of non-alcoholic sparkling beverage brands, including Coca-Cola, Diet Coke, Fanta and Sprite. The Company owns or licenses and markets over 500 non-alcoholic beverage brands. The Company markets, manufactures and sells beverage concentrates, which are referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages.

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