Pernod Ricard (OTCMKTS:PDRDF) & Embotelladora Andina (NYSE:AKO.B) Critical Comparison

Embotelladora Andina (NYSE:AKO.B) and Pernod Ricard (OTCMKTS:PDRDF) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embotelladora Andina	8.46%	23.59%	8.70%
Pernod Ricard	N/A	N/A	N/A

Valuation & Earnings

This table compares Embotelladora Andina and Pernod Ricard”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embotelladora Andina	$3.52 billion	1.39	$295.57 million	$2.05	15.07
Pernod Ricard	N/A	N/A	N/A	C$3.82	20.23

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

Dividends

Embotelladora Andina pays an annual dividend of $0.74 per share and has a dividend yield of 2.4%. Pernod Ricard pays an annual dividend of C$1.67 per share and has a dividend yield of 2.2%. Embotelladora Andina pays out 36.1% of its earnings in the form of a dividend. Pernod Ricard pays out 43.7% 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. Embotelladora Andina is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for Embotelladora Andina and Pernod Ricard, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embotelladora Andina	0	1	0	1	3.00
Pernod Ricard	2	0	0	0	1.00

Institutional and Insider Ownership

1.6% of Embotelladora Andina shares are owned by institutional investors. Comparatively, 39.1% of Pernod Ricard shares are owned by institutional investors. 0.0% of Embotelladora Andina shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Embotelladora Andina beats Pernod Ricard on 9 of the 12 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 Pernod Ricard

Pernod Ricard SA produces and sells wines and spirits worldwide. The company offers whiskey, vodka, gin, rum, liqueur and bitters, champagne, tequila and mezcal, and aperitif under the brands 100 Pipers, Aberlour, Absolut, Absolut Elyx, Altos, ARARAT, Augier, Avion, Ballantine's, Becherovka, Beefeater, Blenders Pride, Brancott Estate, Campo Viejo, Ceder's, Chivas, Church Road, Clan Campbell, Del Maguey, George Wyndham, Green Spot, Havana Club, Imperial, Imperial Blue, Italicus, J.P. Wiser's, Jacob's Creek, Jameson, Jefferson's, Kahlúa, Kenwood, KI NO BI, Lillet, Long John, L'Orbe, Lot No. 40, Malfy, Malibu, Martell, Method & Madness, Midleton Very Rare, Minttu, Monkey 47, Mumm, Olmeca, Ostoya, Passport Scotch, Pastis 51, Pernod, Perrier-Jouët, Plymouth Gin, Powers, Rabbit Hole, Ramazzotti, Redbreast, Ricard, Royal Salute, Royal Stag, Scapa, Seagram's Gin, Secret Speyside, Smooth Ambler, Something Special, St Hugo, Stoneleigh, Suze, The Glenlivet, TX, Wyborowa, and Ysios. It also provides non-alcoholic beverages under the brands Ceder's, Suze Tonic 0%, Cinzano Spritz 0%, Pacific, Campo Viejo Sparkling 0%, and Jacob's Creek Unvined. Pernod Ricard SA was founded in 1805 and is headquartered in Paris, France.