Analyzing Long Island Iced Tea Corp. (LTEA) & Embotelladora Andina (AKO.B)

Long Island Iced Tea Corp. (NASDAQ: LTEA) and Embotelladora Andina (NYSE:AKO.B) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Long Island Iced Tea Corp. and Embotelladora Andina’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%
Embotelladora Andina 5.67% 12.84% 5.08%

Dividends

Embotelladora Andina pays an annual dividend of $0.69 per share. Long Island Iced Tea Corp. does not pay a dividend. Embotelladora Andina pays out 68.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Long Island Iced Tea Corp. and Embotelladora Andina’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 4.71 -$11.97 million ($1.90) -1.31
Embotelladora Andina N/A N/A N/A $1.01 N/A

Embotelladora Andina has higher revenue, but lower earnings than Long Island Iced Tea Corp.. Long Island Iced Tea Corp. is trading at a lower price-to-earnings ratio than Embotelladora Andina, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Long Island Iced Tea Corp. has a beta of -10.73, indicating that its stock price is 1,173% less volatile than the S&P 500. Comparatively, Embotelladora Andina has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Insider & Institutional Ownership

1.1% of Long Island Iced Tea Corp. shares are held by institutional investors. Comparatively, 7.7% of Embotelladora Andina shares are held by institutional investors. 18.1% of Long Island Iced Tea Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Long Island Iced Tea Corp. and Embotelladora Andina, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Long Island Iced Tea Corp. 0 0 0 0 N/A
Embotelladora Andina 1 0 1 0 2.00

Embotelladora Andina has a consensus price target of $25.00, indicating a potential upside of Infinity. Given Embotelladora Andina’s higher probable upside, analysts clearly believe Embotelladora Andina is more favorable than Long Island Iced Tea Corp..

Summary

Embotelladora Andina beats Long Island Iced Tea Corp. on 8 of the 11 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.

Embotelladora Andina Company Profile

Embotelladora Andina S.A. (Andina) is a bottler of Coca-Cola trademark beverages in Latin America. The Company operates in four segments: Chile, Brazil, Argentina and Paraguay. It produces and distributes fruit juices, other fruit-flavored beverages and mineral and purified water in Chile, Argentina and Paraguay under trademarks owned by The Coca-Cola Company. The Company produces, markets and distributes the Coca-Cola trademark beverages and brands licensed from third-parties throughout its franchise territories. It manufactures polyethylene terephthalate (PET) bottles primarily for its own use in the packaging of Coca-Cola soft drinks in Chile and Argentina. In Brazil, it produces tea and juices for Leao Alimentos e Industria Ltda. It also distributes non-carbonated beverages in Brazil, such as tea, fruit juices, energy drinks, sport drinks and waters. It distributes beer in Brazil under the brands Amstel, Bavaria, Birra Moretti, Dos Equis (XX), Edelweiss, Heineken and Kaiser.

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