Reviewing Luckin Coffee (OTCMKTS:LKNCY) & Embotelladora Andina (NYSE:AKO.A)

Embotelladora Andina (NYSE:AKO.A) and Luckin Coffee (OTCMKTS:LKNCY) are both mid-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Embotelladora Andina and Luckin Coffee’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embotelladora Andina	8.16%	24.42%	8.53%
Luckin Coffee	7.23%	28.50%	14.52%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Embotelladora Andina and Luckin Coffee, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embotelladora Andina	0	0	0	0	0.00
Luckin Coffee	0	1	1	0	2.50

Luckin Coffee has a consensus price target of $52.00, suggesting a potential upside of 53.89%. Given Luckin Coffee’s stronger consensus rating and higher probable upside, analysts plainly believe Luckin Coffee is more favorable than Embotelladora Andina.

Earnings and Valuation

This table compares Embotelladora Andina and Luckin Coffee”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embotelladora Andina	$3.52 billion	1.08	$295.57 million	$1.53	15.79
Luckin Coffee	$7.03 billion	1.38	$513.88 million	$1.60	21.12

Luckin Coffee has higher revenue and earnings than Embotelladora Andina. Embotelladora Andina is trading at a lower price-to-earnings ratio than Luckin Coffee, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Embotelladora Andina has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Luckin Coffee has a beta of -0.37, indicating that its stock price is 137% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Embotelladora Andina shares are owned by institutional investors. Comparatively, 0.5% of Luckin Coffee shares are owned by institutional investors. 0.0% of Embotelladora Andina shares are owned by insiders. Comparatively, 2.7% of Luckin Coffee shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Luckin Coffee beats Embotelladora Andina on 12 of the 14 factors compared between the two stocks.

About Embotelladora Andina

Embotelladora Andina S.A., together with its subsidiaries, produces, markets, and distributes Coca-Cola soft drinks in Chile, Brazil, Argentina, and Paraguay. It also offers fruit-flavored beverages, juices, sports and energy drinks, ice tea, and bottled water. Embotelladora Andina S.A. was founded in 1946 and is headquartered in Santiago, Chile.

About Luckin Coffee

Luckin Coffee Inc. offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks. In addition, the company offers Luckin Pop premium instant coffee and inspirational cups through mobile apps and e-commerce platforms. It operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms for third-party payment channels. Further, the company offers technical and consultation services; and manufactures materials for products. Luckin Coffee Inc. was incorporated in 2017 and is headquartered in Xiamen, the People's Republic of China.