Embotelladora Andina SA ADR Series B (NYSE: AKO.B) and Coca-Cola FEMSA (NYSE:KOF) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Embotelladora Andina SA ADR Series B pays an annual dividend of $0.68 per share and has a dividend yield of 2.7%. Coca-Cola FEMSA pays an annual dividend of $1.75 per share and has a dividend yield of 3.0%. Embotelladora Andina SA ADR Series B pays out 59.1% of its earnings in the form of a dividend. Coca-Cola FEMSA pays out 53.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Coca-Cola FEMSA is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Embotelladora Andina SA ADR Series B has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Coca-Cola FEMSA has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Embotelladora Andina SA ADR Series B and Coca-Cola FEMSA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Embotelladora Andina SA ADR Series B||1||0||0||0||1.00|
Embotelladora Andina SA ADR Series B presently has a consensus target price of $25.00, indicating a potential upside of 0.73%. Coca-Cola FEMSA has a consensus target price of $101.50, indicating a potential upside of 75.79%. Given Coca-Cola FEMSA’s stronger consensus rating and higher possible upside, analysts plainly believe Coca-Cola FEMSA is more favorable than Embotelladora Andina SA ADR Series B.
Valuation and Earnings
This table compares Embotelladora Andina SA ADR Series B and Coca-Cola FEMSA’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Embotelladora Andina SA ADR Series B||$2.85 billion||1.37||$176.75 million||$1.15||21.58|
|Coca-Cola FEMSA||$10.81 billion||1.11||-$652.00 million||$3.26||17.71|
Embotelladora Andina SA ADR Series B has higher earnings, but lower revenue than Coca-Cola FEMSA. Coca-Cola FEMSA is trading at a lower price-to-earnings ratio than Embotelladora Andina SA ADR Series B, indicating that it is currently the more affordable of the two stocks.
This table compares Embotelladora Andina SA ADR Series B and Coca-Cola FEMSA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Embotelladora Andina SA ADR Series B||6.67%||14.71%||5.83%|
Institutional & Insider Ownership
2.8% of Embotelladora Andina SA ADR Series B shares are owned by institutional investors. Comparatively, 6.6% of Coca-Cola FEMSA shares are owned by institutional investors. 1.0% of Coca-Cola FEMSA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Coca-Cola FEMSA beats Embotelladora Andina SA ADR Series B on 10 of the 16 factors compared between the two stocks.
Embotelladora Andina SA ADR Series B 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.
Coca-Cola FEMSA Company Profile
Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, distributes, and sells Coca-Cola trademark beverages. The company offers a portfolio of products, including sparkling beverages, still beverages, juices, sports, and energy drinks, as well as teas, waters, isotonics, and dairy products. It provides a portfolio of approximately 154 brands directly, as well as through retail outlets and restaurants to consumers in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, and Argentina. The company was founded in 1979 and is headquartered in Mexico City, Mexico.
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