Head-To-Head Review: Molson Coors Beverage (NYSE:TAP) vs. Embotelladora Andina (NYSE:AKO.B)

Molson Coors Beverage (NYSE:TAP) and Embotelladora Andina (NYSE:AKO.B) 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 dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Molson Coors Beverage and Embotelladora Andina, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Molson Coors Beverage	5	10	4	0	1.95
Embotelladora Andina	0	1	0	1	3.00

Molson Coors Beverage presently has a consensus price target of $43.06, suggesting a potential upside of 9.31%. Given Molson Coors Beverage’s higher possible upside, research analysts clearly believe Molson Coors Beverage is more favorable than Embotelladora Andina.

Profitability

This table compares Molson Coors Beverage and Embotelladora Andina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Molson Coors Beverage	N/A	N/A	N/A
Embotelladora Andina	N/A	N/A	N/A

Dividends

Molson Coors Beverage pays an annual dividend of $1.92 per share and has a dividend yield of 4.9%. Embotelladora Andina pays an annual dividend of $0.97 per share and has a dividend yield of 3.3%. Molson Coors Beverage pays out -16.6% of its earnings in the form of a dividend. Embotelladora Andina pays out 47.3% 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. Molson Coors Beverage has raised its dividend for 4 consecutive years. Molson Coors Beverage is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Molson Coors Beverage has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Embotelladora Andina has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares Molson Coors Beverage and Embotelladora Andina”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Molson Coors Beverage	$11.08 billion	0.74	-$2.42 billion	($11.54)	-3.41
Embotelladora Andina	$3,476.60 billion	0.00	$323.41 million	$2.05	14.41

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

Institutional and Insider Ownership

78.5% of Molson Coors Beverage shares are held by institutional investors. Comparatively, 1.6% of Embotelladora Andina shares are held by institutional investors. 2.3% of Molson Coors Beverage shares are held by insiders. Comparatively, 0.0% of Embotelladora Andina shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Molson Coors Beverage beats Embotelladora Andina on 8 of the 15 factors compared between the two stocks.

About Molson Coors Beverage

Molson Coors Beverage Company manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers flavored malt beverages including hard seltzers, craft, spirits and energy, and ready to drink beverages. It provides its products under Aspall Cider, Blue Moon, Coors Original, Five Trail, Hop Valley brands, Leinenkugel’s, Madri, Miller Genuine Draft, Molson Ultra, Sharp’s, Staropramen, and Vizzy Hard Seltzer above premier brands; Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands; and Branik, Icehouse, Keystone, Miller High Life, Milwaukee’s Best, and Steel Reserve under the economy brands. The company was formerly known as Molson Coors Brewing Company and changed its name to Molson Coors Beverage Company in January 2020. Molson Coors Beverage Company was founded in 1774 and is based in Golden, Colorado.

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.