Contrasting Embotelladora Andina (NYSE:AKO.B) and Keurig Dr Pepper (NASDAQ:KDP)

Embotelladora Andina (NYSE:AKO.B) and Keurig Dr Pepper (NASDAQ:KDP) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Insider and Institutional Ownership

1.6% of Embotelladora Andina shares are held by institutional investors. Comparatively, 94.0% of Keurig Dr Pepper shares are held by institutional investors. 0.0% of Embotelladora Andina shares are held by company insiders. Comparatively, 0.3% of Keurig Dr Pepper shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Embotelladora Andina and Keurig Dr Pepper, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embotelladora Andina	0	1	0	0	2.00
Keurig Dr Pepper	0	9	10	0	2.53

Keurig Dr Pepper has a consensus price target of $37.29, indicating a potential upside of 1.36%. Given Keurig Dr Pepper’s stronger consensus rating and higher probable upside, analysts clearly believe Keurig Dr Pepper is more favorable than Embotelladora Andina.

Valuation & Earnings

This table compares Embotelladora Andina and Keurig Dr Pepper”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embotelladora Andina	$3,626.74 billion	0.00	$295.57 million	$2.09	13.68
Keurig Dr Pepper	$23.13 billion	2.16	$2.08 billion	$1.09	33.75

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

Dividends

Embotelladora Andina pays an annual dividend of $0.97 per share and has a dividend yield of 3.4%. Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Embotelladora Andina pays out 46.4% of its earnings in the form of a dividend. Keurig Dr Pepper pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Keurig Dr Pepper has raised its dividend for 4 consecutive years. Embotelladora Andina is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Embotelladora Andina has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Profitability

This table compares Embotelladora Andina and Keurig Dr Pepper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embotelladora Andina	8.34%	22.29%	8.43%
Keurig Dr Pepper	7.12%	11.27%	4.22%

Summary

Keurig Dr Pepper beats Embotelladora Andina on 9 of the 17 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 Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.